Innovative ideas will help smaller automakers weather the tariff storm
Manufacturers importing vehicles and related components into the United States are all trying to find inventive ways to mitigate the effect of the Trump administration’s tariffs, which are expected to increase the price of a new car by almost $2,000. Among the hardest-hit brands are European and Japanese, as they rely more heavily on imports. Mazda is part of this group, which is why the Japanese marque has hatched a new plan to reduce the impact of tariffs in the USA, but it may not be one you expect.
Mazda Will Shift Focus To Domestic Market
Mazda
Mazda’s plan involved increasing sales in its domestic market of Japan by a third. Currently, the brand sells around 150,000 models annually in Japan, but it wants to boost that number to 200,000 units “as early as possible,” reports Automotive News.
Using its experience of growing the brand in the United States, Mazda will grow domestic sales, too. This process will go beyond its range of cars, as Mazda will also optimize its sales network and relook at its marketing strategy.
“Considering various situations including the most recent tariffs, we think there is a pressing need to rebolster and accelerate our domestic business,” said Tadashi Miura, Mazda president.
After the USA, Japan is Mazda’s biggest market, but it only makes up approximately 10 percent of the brand’s global sales. Five other Japanese brands all outsell Mazda domestically, these being Honda, Toyota, Nissan, Suzuki, and Daihatsu. It all means that there is room for Mazda to increase sales in Japan.
Most US-Bound Mazdas Are Built In Japan
Mazda CX-5 Mazda
The 25% tariffs impact most of Mazda’s US lineup, from the CX-5 to the CX-70 and CX-90, all popular crossovers. These models are produced in Japan, as is the MX-5 Miata sports car. An exception is the CX-50, which became the first Mazda to be produced at the Mazda Toyota Manufacturing USA plant in Huntsville, Alabama. Jointly owned by Mazda and Toyota, the plant also builds the subcompact Toyota Corolla Cross.
As Toyota’s relationship with Mazda deepens, the possibility exists for more Mazda models to be produced at the Huntsville plant. However, this could take a lot of time, which is why it’s wise for Mazda to look at multiple opportunities, including the drive to boost sales in Japan.
Last month, Mazda sales declined by over 6% in the USA compared to May 2024, indicating that the effect of tariffs are already being felt, just as the brand predicted. It remains to be seen how quickly and effectively Mazda can halt this trend, and that may come down to its initiative in Japan.
