Mazda sees China sales of 15,000 Mazda6 cars in 03

TOKYO, Aug 5 Reuters reported that Mazda Motor Corp, Japan's fifth-largest automaker, said on Monday it expected to sell 15,000 Mazda6 mid-sized sedans in China next year after the model becomes its third to be produced in the country.

Boosting its presence in the world's most populous nation, the Ford Motor Co affiliate has agreed with China's biggest auto group, First Automotive Works (FAW), for the Mazda6 to be built at FAW's plant in Changchun, northeast China, from March.

FAW already builds Mazda's Premacy, launched in June 2001 and the Familia, launched last month, at its plant on the southern tropical island of Hainan.

Tsuneo Matsubara, Mazda's managing executive officer for overseas sales, told a news conference the 2.3 litre Mazda6 would go up against Honda Motor Co's Accord and that it would be competitively priced.

He declined to give specifics on price, saying it was up to FAW to make the final decision. The Accord, aimed at affluent Chinese, has a sticker price of around 298,000 yuan ($36,000).

The lowering of Chinese tariffs and the lifting of restrictions on models sold that have come with China's entry into the World Trade Organisation in December have enticed foreign car companies to plunge deeper into the market.

But unlike other stronger Japanese makers which have 50-50 joint ventures with their Chinese partners, Mazda's equity participation in the venture with FAW is tiny.

The agreement is basically a technology licensing pact, with Mazda supplying the kits and technical assistance and FAW building the cars.

Mazda, which is one-third owned by Ford, owns only 17.5 percent of Hainan Mazda Motor Stamping.

Matsubara said Mazda had no plans to take a greater equity stake in any venture with FAW.

"Their factory is capable of building the Mazda6 without any special investment from Mazda and FAW has not requested any equity involvement from Mazda," he said.

He said that even without major capital ties, the relationship was still a strong strategic alliance.

He also said Mazda was continuing to explore opportunities in Mazda with Ford, but he declined to elaborate.

Mazda wants to procure some 40 percent of the China-built Mazda6 parts in China as early as possible and is also looking at the possibility of exporting some parts to Japan, he said.

The automaker also said it plans to expand its number of dealerships in China to about 70 by next spring from around 34 now.

Mazda's shares ended the day down 0.92 percent, in line with a 0.05 percent decline in the Nikkei average.