Mazda Reports Global Revenue Decline in Q3 FY2026; Modest China Growth Fails to Offset Overall Losses

Mazda recently released its financial results for the third quarter of fiscal year 2026 (covering the first nine months ended December 31, 2025): the group reported revenue of JPY 3.5 trillion (approximately RMB 155.36 billion), a 5.1% year-over-year decline; an operating loss of JPY 23.12 billion; and a net loss of JPY 14.71 billion. Global vehicle sales during the period totaled 920,000 units, down 4.8% year-over-year, with only 59,000 units sold in China—a modest increase of 0.9%. Despite the relatively strong performance in China, profitability remained limited due to steep discounts on internal combustion engine vehicles, ongoing investments in new energy vehicles (NEVs), and pressures from foreign exchange rates and rising raw material costs. The company also faces challenges including a lagging NEV transition, weak brand strength, and insufficient synergy between its global strategy and the Chinese market. However, if Mazda elevates the strategic importance of China, accelerates its electrification rollout, and improves the efficiency of its joint ventures, it may still turn the situation around.