Mazda Motor Corp. has invested another 49.5 million yuan ($7.3 millino) in its joint venture sales company with China FAW Group Corp. This lifts its stake in the company from 25 percent to 40 percent.

 

According to Mazda, the move was taken to enable the joint venture, FAW Mazda Motor Sales Co., to expand its sales network and boost sales volume.

 

Of Mazda's new 49.5 million yuan investment, 25 million yuan ($3.7 million) was allocated to the capital base and the remainder to capital surplus.

 

Established in 2005 with registered capital of 100 million yuan ($14.7 million), FAW Mazda currently sells the Mazda6, Mazda6 Ruiyi, Mazda5, Mazda3 five-door hatchback and Mazda RX-8.

 

But of these models, only Mazda 6 and its refreshed version Mazda6 Ruiyi are being built at FAW's plant in the northeast China city of Changchun. The others are imported from Japan.

 

FAW Mazda plans to increase its sales network to more than 140 dealerships by the end of this year, up from 125 dealerships as of the end of March, according to Mazda.

 

In addition to those sold by FAW Mazda, two other Mazda models, the Mazda3 sedan and Mazda2 are sold in China through the Changan Mazda (CAM) dealer network.

 

Both models are produced in China by Changan Ford Mazda Automobile Co.; the Mazda3 sedan at the Chongqing Plant and the Mazda2 at the Nanjing Plant.

 

The Mazda6 is by far the best selling model. In the first quarter of this year, FAW Mazda sold 19,142 units of the car, accounting for 55.5 percent of Mazda's total sales in China, according to Automotive Resources Asia (ARA), a unit of J.D. Power & Associates.