Mazda Motor Corporation has established a new company to integrate its expanding business operations in China.

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Located in Shanghai’s Pudong Xin business district, the new company–Mazda Motor (Shanghai) Business Management & Consulting Co., Ltd, more commonly referred to as Mazda China Operations (MCO), is the first company owned 100% by Mazda in this key market.


Initial capital funding is $US7.5 million, with plans for added investment after a technical support centre is established in Shanghai this summer. Business operations for the new company will begin in late March. Initial staffing is projected to be around 70-80 employees by the end of this year.


Kiyoshi Ozaki, director and senior executive officer at Mazda in charge of China business, was appointed chairman of the Board. Satoshi Tachikake, general manager of Mazda’s China Business Division, is president and CEO of the new company.


Mazda has set a mid-term goal of producing and selling 300,000 vehicles in the Chinese market by 2010.

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It announced on January 7 that it would participate in Changan Ford’s project to build a new manufacturing plant in Nanjing and also revealed plans for a joint venture sales company – FAW Mazda Motor Sales Co., Ltd. (FMSC) – with the First Auto Works (FAW) group on January 17.


Over the next two to three years, Mazda plans to launch eight vehicle models in China to bolster its product line.


The new subsidiary, MCO, will be its regional headquarters and coordinate all facets of business development.


“Mazda is accelerating the expansion of its manufacturing base and strengthening its sales network to achieve our mid-term goals in the booming China market,” said Ozaki. “Locating the new company in Shanghai means we can implement decision making rapidly and efficiently for our facilities in Nanjing, Changchun and Hainan.”


Mazda began full-scale operations in China in May 2001. The company sold 80,075 units in 2003 (up 248% from the previous year) and in 2004 sales grew to 97,132 units- up 21%. The automaker has posted sales increases that exceed total passenger vehicle market growth in China for three years running, despite tough competition.