Monday, February 21, 2011

Far East Dreams coming true for Mazda

Mazda Dealers all were the world will have to work on their supply chain plan as per the location of new plant which is coming up in Far East, Primorye region to be precise. Primorye governor was visibly happy said this is first foreign company to start manufacturing post economic downturn. It will not only be helpful to company’s strategies but also will provide new employment opportunities to locals of Primorye.The expected production capacity is around 30,000 vehicles.

Spokesperson of Mazda is yet to confirm on this development but has not denied that they are in talks with Governor of Primorye Sergei Darkin. These talks are coming in as part of Mazda’s strategy to expand & increase their production capacities in emerging markets including Russia. The president of Mazda Takashi Yamanouchi said they have survived the worst during recession, now is the time to hit back & capture the market share. Mazda Dealers though have not been informed officially about new manufacturing set up but they are aware through grapevine. Lot of manufacturing units has set up in Far East due to its proximity to Japan. Majority of the component in these automobiles are getting imported from Japan, supply chain issues have only become easier. Its yet to be seen whether Mazda will build a brand new plant with state of art infrastructure or it will be using the existing facilities present in the region. In the latter case Mazda might have to get in deal with Sollers. They already have a manufacturing setup with a production capacity of 25000 automobiles which can be ramped up to 40000 automobiles annually.

Mazda Dealers have their work cut out only way they can provide justice to new manufacturing set up is by increasing the sales. They need to work on their marketing strategies to attract new clients, as per the forecast market share can increase only by increasing volume of new automobiles.

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