Diverse Mobility Demands Call for A Multi-Solution Strategy

Q: How has Mazda’s value proposition evolved for customers in Mexico, particularly considering changes in credit access, inflation, and shifting mobility preferences?

A: Mazda’s value proposition has evolved significantly as we have adapted to changing consumer needs. A key factor has been the expansion of our product portfolio. We now offer 13 product lines and participate in the most important segments of Mexico’s automotive industry, giving customers a broader range of options than we had one or two years ago. At the same time, we are advancing toward electrification. We offer mild hybrid vehicles, such as the Mazda3 Mild Hybrid, which represent an important step toward full electrification. In the coming months we will launch the Mazda CX-90 plug-in hybrid, and early next year we plan to introduce the Mazda CX-50 hybrid. Our strategy is to offer products aligned with what consumers are demanding as the market evolves.

We work closely with our partner Santander to tailor solutions to customer needs. We offer financing terms ranging from 12 to 72 months, with down payments starting at around 10% and going up to 40% or 50%, depending on the customer’s profile and preferences. The objective is to provide flexibility so clients can access the product that best suits their circumstances. We have also introduced several programs designed to enhance the ownership experience. These include an extended warranty that allows customers to extend factory coverage to six years or 125,000km, as well as insurance coverage for auto parts theft, which helps customers avoid significant out-of-pocket expenses in the event of incidents such as stolen wheels or rims.

Another initiative, Mazda With You, allows customers to prepay maintenance services for 10,000km, 20,000km, or 30,000km, providing greater predictability and convenience. Overall, our approach places the customer at the center of everything we do. By combining a broader product portfolio, electrification initiatives, flexible financing, and service programs, we aim to deliver a comprehensive ownership experience that responds to the evolving needs of the market.

Q: What core problem does Mazda address for consumers who are transitioning, or considering transitioning, from gasoline to electric or hybrid vehicles?

A: Rather than presenting a single solution, Mazda’s approach is to offer multiple options that allow customers to choose the technology that best fits their needs. This philosophy is reflected in what we call the multi-solution strategy, which recognizes that mobility demands vary significantly across regions and markets. For that reason, Mazda continues to offer internal combustion vehicles, including gasoline and diesel options in certain markets, while also expanding electrified technologies. These include mild hybrid systems, which use a small battery that regenerates energy through braking and vehicle movement, as well as hybrid, plug-in hybrid and EVs.

The objective is not to force a single technological transition but to provide customers with alternatives that match their usage patterns, infrastructure availability, and regulatory environments. Mazda has consistently maintained that the industry would not move toward a single technology, and recent developments suggest a more diversified approach is emerging. At the same time, the company continues to develop electrified products where they make sense. For example, Mazda recently introduced a mid-size electric sedan and an electric SUV in the European Union and China, markets where regulatory frameworks and consumer demand strongly favor EVs. These models are designed specifically for those regions and are not currently part of the lineup in the United States or other markets.

Q: How have consumer purchasing habits changed in 2025, particularly in light of the economic and geopolitical shifts seen last year?

A: In Mexico, consumers’ purchasing power has declined. While automotive financing remains available, economic conditions have changed how customers approach vehicle purchases. One of the clearest shifts is that many buyers now have less capital available for a down payment. When the down payment decreases, monthly payments inevitably increase, which requires manufacturers and financial partners to adapt their offerings to what customers can realistically afford.

As a result, we focus on adjusting financing structures to match customer capabilities. It is also important to understand that purchasing decisions are not determined by interest rates alone. Although automotive loan rates in Mexico — often around 13% or 14% — may appear high compared with markets such as the United States or Japan, financing remains the primary path for consumers to acquire a vehicle.

For this reason, several factors must be considered when evaluating financing options: the size of the down payment, the loan term, payment flexibility, and whether penalties exist for early repayment. Together with our financial partner Santander, Mazda aims to provide transparent financing solutions without hidden conditions, ensuring the offer aligns with what customers are requesting and what they can afford.

Q: Which elements of your operating model are most critical to driving sales growth? 

A: The most critical element for sustaining growth, and the factor that has enabled Mazda to reach its current position after 20 years in Mexico, is our focus on aftersales service. From the beginning, aftersales has been a central pillar of Mazda de México’s strategy. This means consistently strengthening service operations through competitive pricing, well-designed programs, continuous training, honoring warranties, and ensuring customers can easily schedule service appointments. That focus has allowed us to build long-term relationships with customers. Our record performance last year, when we reached 107,000 units sold, reflects foundations that have been built over many years by prioritizing the customer experience beyond the initial purchase.

There is a widely held belief in the automotive industry that vehicle repurchases are not decided in the showroom but in the service workshop. If customers are dissatisfied with their service experience, they are unlikely to buy the same brand again. For that reason, our strategy remains strongly focused on aftersales. Ensuring that every part of the organization aligns with that commitment is the key challenge, but it is also what allows us to sustain growth over time.

Q: What strengths enabled Mazda to produce over 2 million vehicles in Mexico?

A: Producing 2 million vehicles is a major source of pride. From the laying of the first stone to the construction and inauguration of our manufacturing plant in Salamanca, Guanajuato, the journey has been remarkable. Vehicles produced in Salamanca have been exported primarily to the United States and Canada, and at different points also to the European Union, Central America and South America, in addition to serving the domestic market.

Another important aspect of this process has been the transfer of technology and knowledge from Japan to Mexico. The cultural and operational differences between the two countries meant that aligning manufacturing philosophies and working methods required significant effort from everyone involved. Over time, however, the Mexican workforce demonstrated its ability to adopt and lead these processes successfully. A clear example of this evolution is the composition of the workforce. When the plant began operations there were around 300 Japanese employees working across different areas in Salamanca. That number has now decreased to about 30, reflecting the trust that has been built in the capabilities of the Mexican team.

The plant also recently celebrated its 12th anniversary, marking more than a decade of continuous development and growth. If everything proceeds as planned, Mazda also expects to reach another milestone later this year: selling 1 million vehicles in Mexico since the brand entered the market about 20 years ago.

Q: How do you evaluate whether a market is prepared for electrification, particularly in a region like Mexico where charging infrastructure and grid capacity remain limited?

A: Hybrid vehicles represent the most practical solution for the Mexican market. Hybrids combine an electric battery — typically self-charging through regenerative braking — with a conventional gasoline engine, eliminating the need for external charging infrastructure. This configuration works well in large urban areas such as Mexico City, Monterrey, and Guadalajara, where heavy traffic allows the electric component to operate efficiently during low-speed driving. The battery can handle much of the stop-and-go traffic, while the gasoline engine becomes more relevant during highway driving or longer distances.

Charging infrastructure and electrical grid capacity remain major challenges for EV adoption. EVs, plug-in hybrids, and hybrids combined represent roughly 1.5% of the total automotive market in Mexico, which illustrates how limited adoption still is. Urban infrastructure also presents structural barriers. Many residential buildings were not designed to support the electrical load required for widespread vehicle charging. Upgrading that infrastructure would require significant investment, and in many cases building owners or residents may not be willing or able to undertake those modifications.

For these reasons, while electrification remains part of the industry’s long-term evolution, conditions in Mexico make hybrid technologies the most viable pathway for improving efficiency and reducing emissions.

Q: What key indicators determine whether a market is ready for Mazda’s entry or expansion?

A: One of the most important indicators is the overall growth of the automotive market itself. When a market begins to expand and shows sustained demand, it creates the conditions necessary for a brand to evaluate entry or expansion. 

A current example is Argentina, a market where Mazda does not currently have a presence but has been closely monitoring. Historically, Argentina has been the third-largest automotive market in Latin America after Brazil and Mexico. In the past, annual vehicle sales reached around 800,000 units, but that figure fell significantly in previous years to roughly 300,000 or 350,000 units. More recently, however, the market has shown signs of recovery and is approaching approximately 500,000 units again, indicating renewed growth.

In Argentina, vehicle purchases have traditionally relied less on formal credit systems, partly because a significant portion of the population operated outside the banking system. Now, with greater access to automotive credit, lower inflation, and declining interest rates, the environment is becoming more favorable. 

Q: What lessons learned in Mexico could be applied to achieve success in other regions?

A: One of our main objectives is to replicate the business model that Mazda has successfully developed in Mexico and Colombia. Both markets have delivered strong results for the company, and many of the best practices established there can serve as a foundation for expansion across other countries in Latin America. However, those practices must always be adapted to local conditions. While Latin American markets share some similarities, each country has distinct consumer behaviors, economic dynamics, and purchasing patterns. Markets such as Brazil, Argentina, Uruguay, Chile, and Peru all operate differently, and understanding how customers in each country buy vehicles is essential.

Another important factor shaping the region is the growing presence of Chinese automotive brands, particularly in South American markets such as Chile, where competition has intensified. Many of these companies are pursuing aggressive strategies focused primarily on increasing volume.

Mazda’s approach, by contrast, focuses on building long-term brand value rather than prioritizing short-term sales. That strategy emphasizes strengthening the ownership experience, particularly through aftersales service, which plays a critical role in customer loyalty and repeat purchases. Long-term success depends on building a brand and establishing relationships with customers that extend beyond the initial purchase. By combining strong aftersales support with a clear brand identity and adapting to local conditions, Mazda aims to replicate the success it has achieved in Mexico and Colombia throughout the region.

Q: What are Mazda’s main priorities for 2026 and the medium term in Mexico and across Latin America?

A: In Mexico, our main priority is to position Mazda among the top three brands in customer satisfaction in both sales and aftersales service. Last year we ranked third in aftersales satisfaction and 11th in sales satisfaction, so improving the sales experience is a key objective.

Achieving this goal requires alignment across the entire organization and the dealer network. Customer satisfaction depends on the coordinated efforts of many roles — from reception staff and service technicians to parts inventory teams and product quality management.

Increasing sales volume is also an objective, but it is closely linked to customer satisfaction. If we maintain a strong brand, offer competitive products and pricing, and ensure a high-quality ownership experience, sales growth will follow naturally, even in an environment where competition continues to intensify.

Mazda evaluates success through four key indicators that guide our operations: customer satisfaction in aftersales service, customer satisfaction in the sales experience, dealer profitability, and employee engagement. When these factors are aligned they naturally support broader results such as sales growth and higher production volumes. This environment helps sustain demand levels that allow Mazda to surpass its 2025 milestones such as selling more than 107,000 vehicles in Mexico or producing more than 170,000 units at the Salamanca plant during that year.

A strong operating foundation also facilitates the successful introduction of new products. Upcoming launches such as the CX-90 plug-in hybrid and the CX-50 hybrid planned for next year depend on having a market environment where customers trust the brand and are willing to adopt new technologies.

Mazda Motor Corporation is a Japanese automaker known for its innovative engineering and distinctive design.