MAZDA Motor Corp has become the latest victim of China's cooling automotive industry when its sales declined 7 percent to 191,343 units in the first 11 months of this year.

Japan's third biggest carmaker said in a statement yesterday that November deliveries fell 13 percent annually to 17,330 units.

Sales of its joint venture FAW Mazda, which makes the Mazda 6 sedan, shed 6 percent from January to November while another venture, Changan Ford Mazda, saw sales decline 7 percent during the same period.

"The sluggish business performance is due to further weakness in China's overall market as well as the significant price reduction on competitive models," said Yamada Noriaki, president and CEO of Mazda Motor China.

China's once speeding auto market has shifted to a lower gear with a 3.2 percent gain in the first 10 months, after a 32 percent surge in 2010 and 46 percent jump in 2009.

The slowdown has been attributed to several factors, including the expiration of tax incentives for small cars and local authorities' initiatives aimed at easing traffic congestion.

Japanese car makers have also lost stream in China because the March earthquake in Japan has cut supply and delay deliveries. Noriaki said Mazda aims to boost sales by expanding product lines and opening 11 dealerships for its two joint ventures this month to bring its total number to 370 in China by the end of this year.

New products include the hatchback Mazda 3 compact sedan and a brand new compact SUV Mazda CX-5.

Source:shanghaidaily