Mazda Reaps Company Car Sales Dividends

DARTFORD, UNITED KINGDOM – November 12, 2009: Company car drivers choosing Mazda models are getting more for their money as fleets amend vehicle choice lists to take account of significant price rises by some motor manufacturers in 2009. As a result, Mazda is reporting large increases in forward fleet orders as companies realign fleet choice lists to take account of these price changes.

A combination of falling new car sales and the strength of the pound against the euro has resulted in some vehicle manufacturers increasing new car prices three times this year. Collectively those price increases, in some cases, amount to around 12 percent. Meanwhile, Mazda has been able to keep rises to an average of as little as 4.56 percent during the year.

With many fleets using either company car benefit-in-kind tax prices (P11d values), on-the-road prices or monthly contract hire rates as the basis for choice list grades, some carmakers are finding models falling out of favour as businesses refuse to realign choice list benchmarks.

Cost management is the watchword for the majority of businesses due to the economic downturn, as Peter Allibon, fleet and remarketing director, Mazda UK explained: “The significant price rises by some of our rivals and our ability to keep price increases to an absolute minimum is benefiting company car drivers. Companies are not going to allow fleet costs to rise significantly in order to keep drivers in similarly specified cars, particularly in the current economic climate. Additionally, drivers are not prepared to see their benefit-in-kind tax bills escalate to any great extent as a result of new car price rises.”

For example, this year the Mazda6 2.2D 5dr TS2 163ps currently costs £19,330 (P11d value) compared to £18,464 in January 2009, a price rise of less than £900. However, over the same period the Vauxhall Insignia 2.0 CDTi SE has increased in price by more than £2,500 to £22,010, the Volkswagen Passat 2.0 Highline TDI by more than £1,800 to £21,210 and the Toyota Avensis 2.2 D-4D TR by more than £1,400 to £19,747.

“When price rises have come through we have found that on a model for model basis our cars are competing against lower specced cars from our competitors. In some cases rival models are failing to be included on choice lists all together because of the size of the price increases that are being pushed through. Company car drivers choosing Mazda models prior to the 2009 price increases were already getting huge value for money, but now that value is even greater,” Allibon added.

Highlighting how Mazda is benefiting in the recession from this pricing strategy are sales to Britain’s leading contract hire and leasing companies this year - a key barometer of the health of the UK company car market as the majority of fleet vehicles are leased. While registrations across the sector are down by 27 percent, Mazda has bucked the market with sales down less than 11 percent.

Underlining the strength of Mazda is the key ‘net fleet’ segment - sales to contract hire and leasing companies and end-user fleets. In the first nine months of 2009 registrations total 4,133 units compared with 4,634 for the same period last year, a drop of just 501 units, which is a performance better than many competitors. Meanwhile, forward orders from the major contract hire and leasing companies are down almost 11 percent across all manufacturers, while Mazda is reporting orders up by 19 percent.

“Mazda’s sales to ‘core’ fleets in 2009 and our forward order bank are a reflection of Mazda’s more stable pricing regime. Company car drivers are getting better value for money than ever before by choosing our models,” explained Allibon.

The Mazda6 2.2D 5dr TS2 163ps, returns 51.4mpg on the combined fuel cycle and has a CO2 figure of 147g/km and includes a choice of eleven colours and stylish 17-inch alloy wheels. Equipment includes a six CD-changer, integrated Bluetooth® system, dual zone climate control, cruise control and trip computer with speed alarm. The Mazda6 TS2 also benefits from enhanced safety with the new lane-change Rear Vehicle Monitoring (RVM) system and dynamic stability control.