New car keep getting more expensive. As raw material costs rise, combined with inflation, automakers are doing what they can to stay profitable.. The latest automaker to grapple with this is Mazda, like Automotive News reports that the Japanese brand is considering some small price hikes.
Mazda’s Head of Global Sales, Yasuhiro Aoyama, gives a presentation on this topic about the possibility of a price increase as he announced the company’s recent financial results. Aoyama said sales in the US have been good enough that he thinks a small price increase, around $350 per vehicle, will do the job.
But farther there will be a possibility of price increase follow. “To offset higher material and logistics costs, we raised prices in markets where we were able to do so, including the US,” Aoyama said in his earnings presentation. “We will charge higher prices as we continue to monitor market competition and reassess the competitiveness of our products. “
Brands are also spending less on buyer incentives, a habit that automakers try to avoid when they can. With the demand for new cars increasing they sell me quite a lot, Mazda spends just $650 per car on offers in July 2022, the company said.
Besides increasing costs associated with production, the price increase also makes sense for Mazda. The brand is now trying to position itself as more premium and premium. Automotive News speak CX-50, recently launched, has been fetching higher transaction prices at dealers. I think it has more to do with the fact that Mazda has shipped more premium CX-50s to dealers to cash in on the strong market. Anyhow, the brand is planning to hit the high-end crossovers, which will have the CX-70 and CX-90 for the US market next year.