Summary
- Mazda’s focus on driving dynamics, reliability, and affordability has helped it grow steadily despite competition from larger automakers.
- The automaker’s “Jinba Ittai” philosophy emphasizes a fun, driver-focused experience, supported by Skyactiv technology and standout models like the MX-5 Miata.
- Newer Mazda models offer premium features like Nappa leather and advanced tech at prices below traditional luxury brands, earning the “budget BMW” nickname.
- Mazda increased sales during the pandemic by maintaining production levels, meeting demand for SUVs, and bolstering dealer profitability.
- The company achieved a record 16.8% sales increase in 2024, capturing 2.7% of the U.S. market and reaching a 10-year high in market share.
While Mazda might not immediately evoke the same level of excitement as many premium brands do, this Japanese automaker has been sort of an underdog in the last few years. Once on the brink of financial ruin, Mazda’s value proposition, which includes praised driving dynamics by Mazda owners, a reputation for reliability, and a premium feel without breaking the bank, has helped the brand gain traction.
Mazda has relentlessly achieved steady sales growth and increased market share even through the pandemic. But despite this success, it remains somewhat overshadowed by bigger names like Toyota and Honda. Still, there’s a lot of merit to Mazda’s success, considering it remains an independent brand not part of a conglomerate like other brands, which makes Mazda’s story even more compelling.
A Focus on the Fundamentals
The Mazda brand is deeply rooted in driving engagement that they call “Jinba Ittai” or, in English, horse and rider as one. That translates to cars that are fun to drive, with responsive steering, precise handling, and a focus on the driver’s connection to the road. Not just marketing hype. Mazda’s Skyactiv technology, comprising a package of engine, transmission, and chassis innovations, promises to deliver on this.
And the results are outstanding: the Mazda3, for example, often charms reviewers with its sharp handling and enthusiastic driving character that is rarely seen on many enthusiasts’ shortlists. The MX-5 Miata remains the yardstick by which other similarly affordable sports cars should be measured. Such focus on driving dynamics has won Mazda a loyal following and critical acclaim.
It’s not only about performance; it’s about reliability, too. Mazda usually makes the list in reliability surveys. J.D. Power also consistently ranks Mazda high with its vehicle dependability studies, while Consumer Reports has also recognized the brand with long-term reliability. Long-term reliability translates into customer trust and satisfaction.
Premium Feel Without the Premium Price Tag
Newer Mazda cars offer a level of refinement that belies their price tag. These feature Nappa leather interiors, advanced infotainment systems, and premium sound systems, among other items. Mazda generally presents a kind of luxury in its styling cues and use of premium material. Thus, the goal of offering more luxury at lower prices has placed Mazda as a sweeter deal competitor against the high-end traditional brands that command a much higher price.
“Mazda’s reputation is more upscale than most mainstream competitors,” says Tyson Jominy, vice president of data and analytics at J.D. Power. “It is trying to be more like a ‘budget-friendly BMW’ (a bit of a stretch—I know), but it’s working out pretty well.” This “budget BMW” positioning serves to capture Mazda’s distinctive value proposition well, in sales terms.
Mazda’s sales rose 16.8% in 2024 to a record 424,382 units. That helped push its market share to 2.7%, a 10-year high, up from 2.3% in 2023. Dealerships are doing all right, too. Sales are up 55% compared with 2019, the largest increase of any brand. That adds up to a big jump in dealer profitability. Net profits are now up 85% in the last 12 months, and Blue Sky values (dealership goodwill) have shot up to 3.5–4.5 times earnings, equivalent to industry titans such as Ford and Chevrolet.
Navigating the Pandemic and Beyond
While most automakers experienced severe losses in sales during the pandemic, Mazda broke this trend. “Mazda was one of just three to increase sales last year,” an article in The New York Times reported. Indeed, such performance testifies to the brand’s strength and adaptability to the change in market conditions.
Several factors helped Mazda succeed. Firstly, the brand ensured consistent production and inventory levels during the pandemic period and was well-stocked at its dealerships to ensure that sales went as smoothly as possible for customers. “We have vehicles to sell, but we don’t have too many vehicles,” said Rob Sickel, the new chairman of Mazda’s National Dealer Advisory Council. That proactive posture helped Mazda take full advantage of the pent-up demand that followed the first wave of the pandemic.
In-demand SUVs and crossovers indeed became Mazda’s strength. Along that line, the CX-70 and CX-90 do have an affinity to what people need in their requirements: affordability, functionality, and performance in one package.
Third, Mazda’s solid dealer performance helped the company. According to the 2024 Q3 Haig Report, Mazda’s increase in sales in Q3 2024 compared to Q3 2019 was up 47.9%. This growth in dealer profitability speaks to the increasing reputation of the brand and its appeal to consumers as well as its ability to keep up with demand.
In Sum
Mazda has established itself as a reputable brand thanks to its unique value proposition. The brand’s focus on delivering a premium experience at an accessible price point has resonated with new prospective buyers and engaged with the brand’s community even deeper.
Thanks to its winning strategies during the pandemic, a complete lineup of exciting cars, and an excellent dealership network, Mazda continues its upward trajectory, standing up to the giants of the automotive industry.
