Mazda Philippines president Steven Tan reveals his company’s secret as to how they’ve kept the business profitable in the wake of the intense pressure brought on by Chinese brands.
“Since our first year, Mazda [Bermaz Auto Philippines] has always been in the black. This is true when we were selling 5,000 units, and the same when we are selling 2,000 units,” Tan revealed.
Aside from being fiscally responsible when it comes to company expenses, Tan credits his company’s solid partnership with Mazda Corporation.
He recalls being furious at Mazda at one point when they first revealed to Bermaz Auto Philippines that they were going premium. This was way back in 2017. In hindsight, Tan is thankful for Mazda for revealing its roadmap early on and this has helped Bermaz Auto Philippines recalibrate its business plan, particularly in preparing themselves for a different product mix.
“Ten years ago, Mazda Philippines’ average transaction price was about P 1.2-million,” says Tan. “Today, our average transaction price has doubled to around P 2.4-million.”
This shows a clear shift in the average profile of Mazda buyers. A decade ago, Mazda was reliant on models such as the Mazda2 and Mazda3. Today, the Mazda buyer is more monied, opting to purchase more premium vehicles such as the CX-60 and the MX-5. In fact, Mazda Philippines’ best-selling vehicle in 2026 so far has been the MX-5 which starts at P 2.33-million.
“The product mix of Mazda in the Philippines is uniquely premium,” reveals Tan. “This is compared to our neighbors in Indonesia, Thailand, or even Malaysia.”
The push to a more premium segment also had one desired, if unexpected effect: protection against Chinese brands. Chinese brands typically compete in segments below P 2-million, a segment of the market Mazda is now shielded from.
And Mazda’s not stopping there. There are plans to bring in more high-end models, with some possibly breaching the P 4-million mark says Tan. Likely, these could be the brand’s Plug-In Hybrid Models (PHEVs) which they’ve previously confirmed to be arriving in a year’s time. If that is true, it’ll serve as Mazda’s true acid test as it occupies a space occupied by brands such as BMW and Lexus.
Of course, Tan admits that Mazda’s upmarket push doesn’t end with premium products. It comes with its own unique set of challenges, particularly when it comes to the vehicle ownership journey.
“These customers are more discerning,” Tan says. “This puts a lot more emphasis on aftersales service and parts support.”
Tan emphasizes the Japanese term, Omotenashi. Although the direct translation is “hospitality”, it goes beyond that. It’s also about anticipating and caring for a guest’s needs before they’re even asked.
Omotenashi is the reason why Bermaz Auto Philippines has brought in Autoexe and even Michelin into the fold. It’s also why affiliate, Bermaz Auto Asia (BAAI) has been chosen to operate Mazda C5 Pasig. Together with its other Metro Manila dealer partners—Makati, Alabang, and Quezon City—they seek to share best practices together in both sales and aftersales.
When asked whether about the possibility of BAAI operating more Mazda dealerships in the future, Tan simply says, “never say never.”
No chance of bringing in CDM models like the EZ-6 and CX-6?
ReplyDeletePHEVs first, but they didn't discount the possibility of seeing the CX-6e and Mazda6e locally.
DeleteThose kind words & marketing gimmicks have no bearing. Relying heavily on ICE & launching mild hybrids models in 2026 standards will further push Mazda PH down the drain.
ReplyDeleteI concur with Anonymous August 28, 2026 at 11:20 AM.
Delete"....Mazda Philippines Flourished...." sounds like a desperate attempt to hype up a brand that's slowly and painfully dying.
Sorry Mazda Philippines, you can't fool today's car buyers by
sidestepping the matter of Market Sales Volume.
How does being 20th in sales figures be flourishing?
ReplyDeleteThey said it: it's no longer about chasing volume or market share. It's about making sure the business stays profitable and they did that by going upmarket.
DeleteAt this point, think BMW or Lexus...they don't generate big numbers, sales-wise, but they remain profitable.
Byd nga Marami sales dito pinas pero lugi naman AC mobility
DeleteHi. I am genuinely curious about this Sir Uly. Are margins better for BMW, Porsche, and Mazda than say, Mitsubishi? Is this for both dealerships and the importer itself?
DeleteI can't speak for those brands, but typically premium and luxury brands do have higher margins both at the distributor and dealer level. Whereas a mass market brand would have as little as 4 percent margin per unit (sometimes fixed), luxury brands would have double that. Of course, because they have to protect a brand, they can't enter into a pricing war unless they need to flush our older inventory. That's why premium/luxury brands often go with zero percent financing, free fuel, free insurance, etc. instead of outright offering cash discounts.
Delete"How does being 20th in sales figures be flourishing?" - Only in the minds of the people of Mazda Philippines.
DeleteAside from having very good products (which Mazda really have), the dealerships should step up as well in terms of customers service and in responding to inquiries.
ReplyDeleteI agree with you on that one. Mazda Makati has been fairly good so far, but I've heard not-so-great stories with Mazda Alabang.
DeleteI tried Mazda Alabang once and never again. Because the dealership has limited space, there are staff (drivers) that "manage" the vehicles to be serviced. One staff left my car's windows open when there were light rains; and left the engine idling for a long time when I had low fuel (I keep my fuel tank low whenever I visit a delaership for PMS).
Deletemazda pasig the best, i love my 2026 cx8
ReplyDeleteThey have to say that or else their customers will get scared off. 2026 Mazdas looking like they were designed in 2014 since their design language hasn't even change one bit for a decade.
ReplyDeleteIt's a brand going to be out of business next decade.
that's what I was thinking. reminds me of the meme where the house is burning and the dog says "this is fine".
DeleteWHY IS MY MAZDA 3 RATTLING LIKE CRAZY!?!?!?!?!?!? PLEASE FIXXXXXX
ReplyDelete