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Investing.com -- Mazda stock gained 2.5% following the automaker’s presentation of a business restructuring plan for its domestic Japanese market, which aims to significantly increase both sales volume and profitability by fiscal year 2031.
During a small-group meeting with sell-side analysts on Tuesday, Mazda outlined two primary objectives: increasing domestic sales to over 200,000 units and generating more than ¥40 billion in additional profit compared to current levels.
The company’s sales in Japan had previously exceeded the 200,000-unit mark at various points in the past decade but declined to approximately 150,000 units in fiscal year 2025 due to falling sales to new customers.
To achieve its sales target, Mazda plans to consolidate existing dealerships while opening new locations in major metropolitan areas. This restructuring aims to enhance the brand’s value and strengthen SUV sales, particularly targeting new customers in the Japanese market.
The profit growth strategy focuses on expanding Mazda’s value chain businesses, including used cars, insurance, accessories, and auto financing. The company noted that these operations had previously been outsourced to external partners, resulting in missed profit opportunities. By internalizing more of these functions, Mazda expects to capture additional earnings that were previously unavailable.
The business reform plan represents Mazda’s efforts to revitalize its position in its home market while improving overall profitability through a more integrated business approach.
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