Changan Mazda Appoints New Sales Head to Drive EV Strategy
TREE NEWS reports: Changan Mazda, the joint venture between Changan Automobile and Mazda Motor, announced on November 9 that Wu Xuxi, executive deputy general manager of its sales subsidiary, will take on a new assignment due to work adjustments. Liu Bin, a 25-year veteran in automotive sales and marketing, will succeed him effective immediately. Liu previously served as director of the distribution center at Changan Automobile Sales Co. and managed regional operations for Changan Oshan in Guangzhou. His appointment comes as Changan Mazda accelerates its electrification push, with new energy vehicles (NEVs) already exported to Europe while domestic dealers are still exploring how to sell these models to more Chinese buyers.
EV Rollout and Financial Performance
In autumn 2024, the EZ-6, a new energy sedan jointly developed by Mazda and Changan, was launched. Changan Mazda posted a net loss of 278 million yuan for the full year. The following year, the EZ-60 SUV was introduced, with both models offering pure electric and extended-range versions. Exports have brought incremental growth to the Nanjing plant. Changan Mazda began exporting NEVs in March last year, shipping about 15,000 units that year. In August, the overseas version of the EZ-60, the CX-6e, went on sale in Europe, and in October it entered Thailand. Wu Xuxi had projected that Changan Mazda’s NEV exports would exceed 50,000 units in 2026.
Mazda’s production and sales data show that in the first three quarters of this year, Mazda sold 46,904 vehicles in China, down 2.9% year-on-year. Third-quarter sales rebounded 13.4% year-on-year but did not fully offset the decline in the first half. The two EVs initially attracted very different buyers. At the 2024 Guangzhou Auto Show, Wu said that nearly 60% of EZ-6 buyers in the first month were existing Mazda owners returning to add or replace a vehicle. A year later, at the same show, Changan Mazda reported that 82% of early EZ-60 buyers were new to the brand. Wu noted that many were initially drawn by the design and only appreciated Mazda’s handling after a test drive.
However, a manager at a Changan Mazda dealership in Beijing said the store sells only double-digit units per month, with most customers already Mazda fans; few young people visit, and even fewer choose EVs. Changan Mazda mentioned in the appointment announcement that Wu had promoted dealer upgrades for NEV services. As early as the EZ-6 launch, the company adopted an agency model for the car. The manufacturer centrally manages terminal prices, consumers can pay deposits and final payments via the “Yue Ma Xing Kong” app, and store product experts handle viewing and test drives, while delivery experts guide owners through assisted driving features. In some cities, this sales division has extended beyond the store. Customers can book test drives on Changan Mazda’s official website, and the information is passed to authorized dealers in the selected or nearby city for follow-up. On November 4, two dealers in Dongguan and Shenzhen announced that within their sales areas, customers could arrange for product experts to bring test vehicles to their door.
From April to September this year, the EZ-60 drove a rebound in Mazda’s China sales. But at the earnings briefing on November 9, Mazda still lowered its full-year China sales forecast from 71,000 to 69,000 units. Exports have boosted the joint venture’s total sales, but to stabilize the domestic market, EVs must fill the gap left by fuel vehicles. Mazda therefore lists regions with strong NEV demand alongside its traditional brand strongholds as sales priorities. For Liu Bin, old stores still need to serve loyal customers, while new test drive vehicles and promotional investments must follow EV buyers.
Market Implications
The leadership change signals Changan Mazda’s recognition that its EV strategy requires a more agile and localized marketing approach. The agency model and door-to-door test drives reflect attempts to reduce dealer friction and attract new customers, particularly younger buyers who are less familiar with the Mazda brand. However, the persistent domestic sales decline and the downward revision of Mazda’s China forecast underscore the challenges facing foreign-brand joint ventures in China’s fiercely competitive EV market. The export success, particularly in Europe and Thailand, offers a bright spot, but scaling exports to 50,000 units by 2026 will require robust demand and efficient logistics.
For investors, the news highlights the broader pressures on legacy automakers transitioning to electric vehicles. Changan Mazda’s performance is a small but telling indicator of the difficulties in the Chinese market, where domestic EV makers like BYD and Tesla dominate. The joint venture’s losses and sales volatility may weigh on Changan Automobile’s earnings, though the export angle provides some diversification. Mazda’s lowered China forecast could also signal cautious outlook for other foreign joint ventures. Bond investors should monitor the credit profile of Changan Automobile, while equity investors may watch for signs of stabilization in sales and the success of the new marketing initiatives under Liu Bin.
Key Takeaways
- Changan Mazda appoints Liu Bin as executive deputy general manager of sales to lead EV marketing efforts amid a domestic sales decline.
- The joint venture’s NEV exports are growing, with Europe and Thailand as key markets, but domestic dealers struggle to attract new EV buyers.
- Mazda lowered its China sales forecast for the fiscal year, reflecting ongoing challenges in the world’s largest auto market.
- Investors should watch for execution risks in the agency model and export ramp-up, as well as the impact on Changan Automobile’s financials.
