How Mazda North America’s 10-year revitalization plan increased revenue
The company revamped its dealership program.
• 4 min read
It’s often said that anticipation is the key to responsible driving; considering what someone else might do on the road helps put you on the front foot. For Japanese automaker Mazda, putting its customers first—or the concept of “omotenashi”—has become a core tenet of the brand.
That philosophy is also a central component of the over decade-long brand overhaul for Mazda’s North American arm. Initiated in 2014, the strategy extends from the C-suite to dealerships and has helped grow sales 40%, according to Tim Manning, head of retail operations for Mazda North America. The revitalization plan focuses on three pillars: environment (the look and feel of dealerships), product (the cars), and experience (the relationship between dealers and customers.)
That last one is particularly important, as the carmaker made transforming its dealer facilities a key part of the brand’s value strategy.
“From our sales consultants to our service advisors, everyone is trained to add value to the customer’s life—[it’s] not just about completing a sale,” said Rob Sickel, chairman of Mazda’s National Dealer Advisory Council and dealer principal at Pine Belt Enterprises, said in a statement via email. “Customers feel the difference when they walk through our doors, and that’s why they keep coming back.”
Retail evolution
Mazda North America’s revamp started in its dealerships, and it’s here that omotenashi came to the forefront. Spearheaded by Manning, the lack of identity posed an immediate problem. Prior to 2014, many Mazda dealerships didn’t have a uniform look and feel. Roughly 400 signed on for the “retail evolution,” which made spaces sleeker and more uniform to represent the Mazda brand. Today, 81% of Mazda’s US dealerships are exclusive to the company (meaning no other car brands are represented). Those dealerships account for 92% of retail sales.
“Throughput is so important because every transaction, every interaction, every selling of a car, servicing of a customer—the more we are doing that out of a single point obviously improves the profitability of the store,” Manning said. “We have the right number of dealers for the volume we’re doing today.”
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Manning explained that 18%–20% of locations closed down as a consequence of the dealership revamp. However, this did not impact revenue generation as the company was able to put more assets into higher-performing locations. “Fewer dealers selling more cars, servicing more customers, increases their throughput,” Manning said.
Growing market share
Mazda North America has also boosted customer retention over the last decade. From 2015 to 2024, total brand loyalty increased by 11%. Certified pre-owned Mazda vehicles also increased by 73%, according to Manning. These factors have helped Mazda’s market share in North America increase from 1.8% in 2014 to 2.8% in 2024.
Service retention—car owners bringing their vehicles to Mazda dealerships for servicing—also increased from 51.3% in 2020 to 58% in 2024.
“We’re doing a much better job of delivering an experience and building that relationship with our owners so that a much higher percentage comes back,” Manning said. “I want to be fully transparent. We’re not where we need to be. We’re below the industry average and we’ve still got some work to do.”
Experience matters
Improving the Mazda experience took various forms: from the retail evolution, to improved products and more personal relationships between customer and sales associates. This has impacted loyalty and retention figures and is expected to continue to increase next year.
“Mazda had a best-ever 2024 and has started out 2025 with record sales,” Manning said. “Our dealers are paying more to acquire Mazda stores, and our dealers that have them have an asset that’s worth more than it has ever been. That’s all stemming from that brand value management philosophy.”
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