Mazda Motor and Sumitomo held a ceremony to mark the beginning of construction of a jointly owned new vehicle production facility named Mazda Motor Manufacturing de Mexico (MMMdM) in the city of Salamanca, in the state of Guanajuato.

"Since Mazda established its sales network in Mexico six years ago, we have experienced a remarkable acceptance from the people of Mexico. Last year Mazda sold over 25,000 vehicles and captured over 3% market share," said Mazda's president Takashi Yamanouchi. "We are excited to be constructing this new facility here in Mexico with our partner Sumitomo Corporation. It will be vital to bolstering our expansion in Central and South America."

The new facility will include both vehicle and engine assembly plants and will commence operations in fiscal 2014 with an annual production capacity of 140,000 units. It will produce Mazda 2 (Demio in Japan) and 3 (Axela) models.