Chang'an and FAW clenched their hands in the third hole of Mazda in China
The reporter Zhang Huozhaohu from Beijing reported that the deep collaboration between Ford and Changan has reignited Mazda’s ambitions as a sub-brand under Ford. Early rumors suggested that Mazda might begin producing the new Mazda3 in Nanjing, while some analysts speculated that the company would focus on expanding its operations in Hainan and Jilin. However, recent developments have shown that Mazda's plans are even more ambitious than previously expected.
On July 18th, FAW Hainan Mazda officially launched 150,000 hippocampus plants at once, signaling a major expansion. Just four days later, Jingju Kuiichi, a representative of Mazda as a Ford subsidiary, attended the signing ceremony for the official investment agreement of Changan Ford Nanjing No. 2 Factory. These events revealed a clear strategy: Changchun, Haikou, and Nanjing are all key locations in Mazda’s Chinese development plan. With FAW and Changan as its two main joint venture partners, Mazda is firmly positioning itself in the market.
Japanese automakers typically take a cautious approach when investing abroad. For example, Honda initially invested only a few thousand units in India, while Toyota first established a joint venture with GM in the U.S. before setting up a separate plant in Kentucky. Its first plant in China had a capacity of just 30,000 units. But Mazda seems to be moving faster this time.
According to insiders, the newly formed FAW Haima Company will continue to strengthen its cooperation with Mazda Corporation in Japan while also developing its own brand in line with new industrial policies. The goal is to build a production and sales system capable of handling 150,000 passenger cars within three to five years.
Just after the official launch of FAW Hainan Mazda, Hainan Province held an economic analysis meeting, where officials announced that the auto manufacturing industry would become one of the province’s four key sectors. Mazda’s decision to invest in the second factory of Changan Ford in Nanjing reflects its confidence in the region’s strategic value. Located near Shanghai, Nanjing benefits from easy access to the Wusongkou port, proximity to Baosteel for raw materials, and access to major parts distribution centers in Shanghai, Kunshan, and Xiaoshan—offering significant cost savings.
Additionally, Nanjing offers logistical advantages over Chongqing, saving nearly a week in transportation time. This makes it ideal for reducing the costs of importing CKD (completely knocked down) components. Mazda understands that Chinese consumers prefer foreign brands that are new and affordable, often cheaper than imported models. To meet this demand, minimizing transportation costs is essential.
In fact, after localization, some Japanese cars in China have managed to narrow the price gap with their imported counterparts, such as Sichuan-produced models. Another reason for Mazda’s investment in Nanjing is the new industrial policy, which places Mazda under the Ford Alliance. Since Ford already has two joint ventures in the passenger vehicle sector, Mazda must align with these partners. Ford chose Changan, and Mazda followed suit, making Changan its primary partner in China.
At the Nanjing ceremony, Mazda President Ikegami Ikuro emphasized that “Changan Ford’s land purchase is a necessary and important step for Mazda to expand its market in China.†Ford also highlighted the mutual benefits of the partnership, with Shu Mingkai, Ford’s executive vice president, stating that the new plant in China is a “mutually beneficial extension†of the relationship between the two companies.
A simple calculation shows that with combined production capacities of over 200,000 units across Changchun, Hainan, and Nanjing, Mazda is set to enter the top ten automotive manufacturers in China. While Volkswagen and GM focus on aggressive market capture, Mazda aims to support Ford’s growth and regain its position as a global second-tier automaker.
In this collaboration, Mazda brings its fast-growing marketing model and operational experience in China, which impresses Ford. As Ford catches up with Mazda’s Prima and Fairfax models in the low-end sedan segment, it’s clear that Chinese consumers value both brand reputation and cost-effectiveness. Mazda understood this earlier, focusing on dynamic features, rich configurations, and customer service.
Mazda’s channel marketing emphasizes a unified nationwide network of dealers and parts suppliers, offering competitive pricing compared to European and American alternatives. In terms of capital operations, Ford’s support allows Mazda to grow stronger, and now is a crucial moment for expansion.
Since entering China, Mazda started with technology transfer, establishing strongholds in Hainan and Changchun. It has since transferred more advanced technologies to Hainan and participated in capital operations through the Nanjing Plant. Some experts believe that Mazda may follow Mitsubishi’s path, such as the Beijing Jeep joint venture, by achieving formal equity participation under the Ford umbrella.
Mazda owes much of its success to China. In the 1990s, it was overshadowed by European and American automakers like Fuji, Isuzu, Suzuki, Mitsubishi, and Nissan. But in 2002, the Hainan Mazda project—initially not a priority—became a miracle, with the Primica MPV becoming a dark horse. In 2003, the Formica 323 variants captured the Chinese market, followed by the Mazda 6 in Changchun. Mazda successfully challenged the New Accord and Sonata, grabbing a significant market share.
At the Tokyo Motor Show in October 2003, Mazda’s president, Ieyasu, publicly thanked the Chinese and American markets for their role in the company’s success.
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