Customers should consider more than the purchase price of a new car, according to a Mazda Australia executive, as factors such as resale and quality should also be considered.
Mazda Australia believes it can still carve its own corner of the crowding new-car market despite rivals arriving with arguably more technology and lower prices, mainly from China.
Speaking to Drive, Mazda Australia boss Vinesh Bhindi said market movements that have seen the introduction of brands like Leapmotor, Deepal, and Cupra in recent years have not changed the brand’s strategy of targeting around 100,000 annual sales.
“Before the influx of these newer brands that you talk about, we were still highly competitive,” Bhindi said.
“We had a lot more brands than many other regions, and only competing for one-to-1.2 million [sales].”
However, Bhindi pointed out that car buyers will not only look at new vehicles for sale when making a purchasing decision, and the used-car market also plays an important role – especially where brand credibility and reliability play a much more important role.
“I think it's important to look at it from the whole picture, and include used cars. So, one million used cars, 1.2 new cars – there's a market of 2.2 million out there, whether it's new or used,” Bhindi said.
“And consumers make a choice, do you buy a used car from an established brand, or maybe take a new car from a newer brand? Choice is great for consumers.
“The advantage that someone like Mazda and some other brands is, we've been in this country for a very long time, for decades.
“We have a good, strong customer base who understands our value proposition, who understands the Mazda product, and there is a loyalty.
“We've just got to keep meeting their demand and expectations with our products.”
With Mazda’s most affordable model now priced at $26,990 before on-road costs for the base Mazda 2 hatchback, compared with the cheapest MG or Chery offering at $21,990 drive-away for the MG3 and $23,990 for the Tiggo 4 Pro SUV, the Japanese brand cannot compete in outright figures.
However, Bhindi argues that the initial purchase price is only one factor of the car-buying equation, and that consumer confidence in a ‘quality’ product that is likely to better retain its value should also be considered.
“Quality-driven provides value, provides resale value, confidence in resale value, and then, more importantly, confidence in a dealer network that's around Australia that can provide the service that these consumers are looking at,” Bhindi said.
“Now, that doesn't mean to say that others are not offering it, [but] they're offering their version of it.”
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
