Mazda to cap prices once tax takes effect

The Mazda CX-3 SkyActiv sport-utility vehicle was launched yesterday for the domestic market. Mazda began making the CX-3 last month at AutoAlliance (Thailand), a joint venture with Ford Motor Co.

Mazda Sales (Thailand) has vowed to cap retail prices for large passenger cars and pickup trucks that are subject to a new excise tax next year.

President Hidesuke Takesue said the Japanese car maker would opt to control production costs and manage volume carefully , as the excise tax rates would be based on ex-factory prices, not retail.

Mazda is also committed to subsidising the difference in amounts incurred by the excise tax.

From 2016 on, vehicles sold in Thailand will be subject to a new excise tax based on carbon dioxide emissions, E85-gasohol compatibility and fuel efficiency rather than just engine size as before.

The excise tax on eco-cars with CO2 emissions below 100 grammes per kilometre will be cut to 12-14% from 17%, but the 10% rate for hybrid vehicles will remain.

The company estimates prices for its Mazda3, CX-5 sport-utility vehicle (SUV) and BT-50 Pro pickup truck will increase by 3-5% early next year once the new tax regime takes effect.

“There are many factors in setting car prices, based not only on excise tax but also an import duty for some auto parts, local tax and value-added tax, so the company will take all factors into account before announcing retail prices,” Mr Takesue said.

For the Mazda2 eco-car, the retail price will drop by roughly 20,000 baht next year with the new excise tax.

Mazda posted sales of 29,641 vehicles in the January-October period, up 2.2% year-on-year.

The company also gained a higher market share during the period, to 4.8% from 3.89%.

Mazda2 eco-cars had a 49.6% share of total sales for the period, followed by the BT-50 (21.4%), the Mazda3 (19.6%), the CX-5 (9.3%) and other models.

Mr Takesue expects sales to grow by 10.7% this year to 38,000 vehicles after falling 35.1% in 2014 to 34,326.

In related news, the company yesterday introduced the CX-3 SkyActiv, which it started making last month at AutoAlliance (Thailand), a joint venture with Ford Motor Co.

The Hiroshima-based parent firm has invested 800 million baht in production of the model to serve the local market and exports.

The Mazda CX-3 is available in both 1.5-litre SkyActiv-D (diesel) and two-litre SkyActiv-G (petrol) engines, with prices ranging from 835,000 to 1.155 million baht (to remain unchanged next year).

The Mazda CX-3 is the fourth model on the SkyActiv platform in the Thai market after the CX-5 SUV, the Mazda3 and the Mazda2.

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