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Mazda Creates Auto Industry First with New Inventory Management System

- New inventory control system will result in less customer wait time -

HIROSHIMA, Japan--In an automotive industry first, Mazda Motor Corporation willlaunch its Mazda Materials Management Planning (M3P) advanced inventory control

system throughout Japan in April 2005. As part of the ongoing evolution of its stock management system, M3P enables optimized inventory levels, improved supplyefficiency and streamlined business practices for Mazda retail and service operations in

Japan. And customers will reap the benefits: better service, faster response times. The

rollout of M3P is the first in a series of gradual deployments around the world in Mazda’s

efforts to create the auto industry’s leading inventory control management system.

The point of sale (POS) management system is ubiquitous in the retail industry--

convenience stores and supermarkets, for example--and permits outlets to record all

product sales information. The aggregate data can then be used in an inventory control

system. Mazda is the first company in the automotive sector to introduce the POS system

for the purpose of inventory control. The M3P system will cover 240,000 parts thatMazda handles.

POS inventory control will enable Mazda’s M3P architecture to manage standinginventory at parts franchises, implement multilevel inventory control, and revamp

demand forecasts.

Automated dealer inventory management

POS management automates inventory control for more efficient use of existing dealer

methods of customer handling and finance, achieving greater work efficiencies.Specifically, each dealer’s range of products and parts inventory will be periodically

reviewed to promote needs-based control without any manual input. This enables 90 percent of regular maintenance at dealers--parts replacement or vehicle checkups are

examples--to be performed within one hour. Trials have already been completed in Japan

and full nationwide rollout starts in April 2005.

Optimized multilevel inventory management

Parts inventory historically have been managed independently at each dealer, each parts

distributor, and at Mazda Motor Corporation itself. M3P’s multilevel inventorymanagement enables better demand forecasting and optimized inventory management atall three levels by tracing customer orders throughout the supply chain from the point of

sale at the dealership through the entire Mazda operation.

Upgraded demand forecasting

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Based on three-plus years of order performance data, M3P can handle demand

fluctuation. It has improved accuracy for demand forecasting--up to one year in advance.

This reduces surplus inventory and improves delivery time, and an aim of 98 percent or higher fill rate.

For Mazda, use of this state-of-the-art system is being driven by the desire to achieve

better customer satisfaction and greater confidence levels between customers and dealers.

Mazda MX-5 3rd Generation Limited to Debut at New York International Auto Show

NEW YORK --Mazda wants to add some bite to the Big Apple. The Hiroshima-basedcompany will use the 2005 New York International Automobile Show to reveal the MX-5

3rd Generation Limited, a unique, launch edition of the all-new MX-5 roadster, the next

generation of the best selling two-seat, open-top sports car of all time. The show opens to

the public on March 25.

The limited edition launch model commemorates the all-new MX-5’s evolved “lots-of-

fun” character and jinba ittai driving attributes, and marks its global sales kickoff, slated

for the latter half of 2005. Jinba ittai (pronounced ‘gin-buy ee-tai’) is a Japaneseexpression that literally means “rider and horse as one” and conveys the harmony felt

between car and driver in motion. The limited edition production run will be 3,500 units

for global markets, and sales are being synchronized with the start of sales for the all-new

MX-5 roadster.

The interior and exterior design of the 3rd Generation Limited features glossy chrome-

silver parts as a salient design element, accentuating the feeling of high quality, and

evoking the classic and the modern combined in a lightweight, open-top sports car. Theinherent dexterity and light, responsive feel of the MX-5 is also expressed in the 17-inchaluminum alloy wheels with a newly-developed silver finish--a hue created to sparkle like

that of a finely crafted Japanese sword. All MX-5 3rd Generation Limited models will

come equipped with the 2.0-liter MZR engine and a six-speed manual transmission; eachwill carry a unique badge stating the sequential production number. Show model has

Velocity Red Mica exterior--exclusive to the limited edition--matched with deep crimson

leather seats. Additional colors will be available.

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Mazda MX-5 3rd Generation Limited

At the annual New York auto show, Mazda will also feature additional versions of the all-new MX-5. Other key Mazda vehicles will be exhibited in its Zoom-Zoom showroom,

including the all-new Mazda5 and an upgraded model of the award-winning Mazda6. Theshow runs from March 23 to April 3. Press days are March 23 and 24.

Streaming video and more information about the new MX-5 are available athttp://www.mazda.com/product/mx-5/

MAZDA PRODUCTION AND SALES RESULTS FOR FEBRUARY 2005

• Production and Sales Results

• Breakdown of Primary Products[Monthly]

• Highlights

Production and Sales Results

Mazda Motor Corporation reported today its domestic production, domestic sales, exports

and overseas production figures for February 2005.

.

Breakdown

February 2005 Jan. - Feb. 2005

UnitsYoY

Change (%)Units

YoY

Change (%)

DOMESTIC

PRODUCTION

Passenger Cars 63,750 +2.2 115,104 -6.4

Commercial Vehicles 2,864 -44.1 4,796 -54.3

Total 66,614 -1.3 119,900 -10.2

DOMESTIC Passenger Cars

http://www.mazda.com/product/mx-5/

http://www.mazda.com/product/mx-5/

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SALES

Registrations 17,162 -9.3 32,386 -9.4

Micro-minis 3,824 +10.5 8,042 +18.3

Sub Total 20,986 -6.2 40,428 -5.0

Commercial Vehicles

Registrations 2,495 -4.1 4,838 -7.2

Micro-minis 951 +16.0 1,699 +12.5

Sub Total 3,446 +0.7 6,537 -2.8

Registration Total 19,657 -8.7 37,224 -9.1

Micro-mini Total 4,775 +11.5 9,741 +17.2

Total 24,432 -5.3 46,965 -4.7

EXPORTS

Passenger Cars 38,060 -17.4 76,805 -13.8

Commercial Vehicles 91 -82.5 210 -75.8

Total 38,151 -18.1 77,015 -14.4

OVERSEAS

PRODUCTION

Passenger Cars 15,840 -5.0 30,640 -10.3

Commercial Vehicles 5,596 +48.9 11,446 +6.9

Total 21,436 +4.9 42,086 -6.2

(Notes) Overseas Production units are calculated based on the parts and component shipments for

Mazda brand models to be assembled at overseas production facilities.

PAGE TOP

Breakdown of Primary Products[Monthly]

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(1) Domestic Production

Models Units YoY(%) Models Units YoY(%)

Demio (Mazda2) 7,113 +1.7 Premacy 4,353 +86.6

Verisa 1,667 - MPV 5,110 -18.1

Familia (323, Protegé)/Laser

Lidea520 -59.4 Tribute/Escape 1,328 -34.7

Atenza (Mazda6) 12,220 +23.5 Bongo Friendee 0 -100.0

Axela (Mazda3) 31,232 +25.5 Bongo Series (E-Series) 2,402 -40.3

Roadster (MX-5, MX-5 Miata) 67 -97.5 Titan Series (T-Series) 462 -57.9

RX-8 0 -100.0 Others 140 -30.0

Total 66,614 -1.3

(2) Domestic Sales


Carol 883 +195.3 Premacy 2,359 +193.0

AZ-Wagon 2,385 +4.4 MPV 2,695 -10.8

Spiano 336 -47.9 Tribute 259 -22.7

Demio 6,020 -26.2 Bongo Friendee 12 -94.5

Verisa 1,591 - Scrum 951 +16.0

Atenza 1,443 -29.3 Bongo Series 1,164 -11.3

Axela 2,525 +4.8 Titan Series 996 -2.4

Roadster 36 -82.9 Others 736 -18.9

RX-8 41 -96.9 Total 24,432 -5.3

(3) Exports


Demio (Mazda2) 825 +26.1 Premacy 186 -88.4


Lidea1,700 +107.3 MPV 1,291 -61.8

Atenza (Mazda6) 8,457 -0.2 Tribute/Escape 911 -30.6

Axela (Mazda3) 24,534 +8.9 Bongo T/V (E-Series) 71 -85.5

Roadster (MX-5, MX-5 Miata) 2 -99.9 Others 160 -36.3

RX-8 14 -99.7 Total 38,151 -18.1

(Exports by region)

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Regions Units YoY(%) Regions Units YoY(%)

North America 13,966 -25.1 Asia 1,623 -15.3

Europe 12,306 -21.8 Africa 554 +52.6

Oceania 5,807 +1.9 Central and South America 2,012 -17.8

Middle East 1,883 +7.4

(4) Overseas Production



Lidea4,800 +18.8 Tribute 300 +200.0

Atenza (Mazda6) 9,100 -22.6 Proceed (B-Series) 4,596 +22.3

Axela (Mazda3) 980 - Titan Series (T-Series) 1,000 -

Premacy 660 -15.4 Total 21,436 +4.9

*Model names in parentheses are for the overseas market.

PAGE TOP

Highlights

(1) Domestic Production

1. Models that showed an increase over the same month last year: Premacy, up

86.6%, Bongo Truck, up 51.0%, Mazda3, up 25.5%, Mazda6, up 23.5%

New model: Verisa (1,667 units)

2. Holiday operations: Three days (February 12, 19, 26) at Ujina Plant No.1 and No.2,

four days (February 5, 12, 19, 26) at Hofu Plant No.1 and No.2

(2) Domestic Sales

1. Models that showed an increase over the same month last year: Carol, up 195.3%,

Premacy, up 193.0%, Bongo Truck, up 119.1%, Axela, up 4.8%, AZ-Wagon, up4.4%

New model: Verisa (1,591 units)

2. Market share increased over the same month last year.

-Micro-minis: 2.8%, up 0.3 points(increased for the eleventh consecutive month since April 2004)

(3) Exports

1. Models that showed an increase over the same month last year: Mazda2, up 26.1%,Mazda3, up 8.9%

2. Destinations that showed an increase over the same month last year: Africa, up

52.6%, the Middle East, up 7.4%, Oceania, up 1.9%

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3. Major countries that showed an increase over the same month last year (shipment

based):

Country Units Change (%) Major contributors

Australia 5,154 +0.6 Mazda3, Mazda6

Russia 1,715 +297.9 Mazda3, Mazda6Spain 1,523 +127.3 Mazda3, Mazda6

(4) Overseas Production

1. Overseas Production increased from a year earlier for the first time in two months

since December 2004.

2. Models that showed an increase over the same month last year: Tribute, up 200.0%,

B-Series, up 22.3%, 323, up 18.8%, T-Series (1,000 units)

FAW Mazda Motor Sales Co. Ltd. (FMSC) Holds Opening Ceremony and Announces

Management Team

CHANGCHUN--FAW Mazda Motor Sales Co. Ltd (FMSC) held an opening ceremony inChangchun on March 28 and announced its management team. FMSC is the national

sales company jointly established by Mazda Motor Corporation, First Auto Works (FAW)

and FAW subsidiary FAW Car Co. Limited (FCC) that started operations on March 1.

The opening ceremony took place in a hotel in Changchun with approximately 200 people in attendance from FAW, Mazda, and dealers. The Deputy Governor of Jinlin

Province, Niu Hai Jun, and Deputy Mayor in Chungchun, Zhang An Shun, joined in the

ceremony as guests and Kiyoshi Ozaki, Mazda’s senior executive officer in charge of its

China business and Satoshi Tachikake, executive officer, attended from Mazda.

The management team of FMSC was announced in the ceremony. Noriaki Yamada,

Deputy General Manager of Mazda’s China Business Division, was appointed President,

and Yu Hongjiang from FCC became Vice President. An De Wu, Vice President of FAWand Kiyoshi Ozaki, Mazda’s senior managing executive officer, became Chairman and

Vice Chairman, respectively.

“This joint venture is a landmark cooperative business undertaking between FAW group

and Mazda, “ said An De Wu at the ceremony. “Over the next few years, Mazda’s products will lead trends in the Chinese automotive market and will be a leader, providing

fun-to-drive experiences. We would like to establish a strong Mazda brand throughFAW’s ample resources and experience in conjunction with Mazda’s cutting-edgemarketing and sales know-how. I am confident that this joint venture will be a big

success.”

“Mazda continues to construct a system to achieve our mid-term goal of producing and

selling 300,000 units in the Chinese market by 2010,” said Mr. Kiyoshi Ozaki. “This new joint venture is a significant step forward for Mazda’s expansion in China and is one of

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our major strategies to achieve our targets. The new President, Noriaki Yamada, is a

Mazda veteran in sales, marketing, and parts business and I am confident that he will

strongly lead the company.”

Noriaki Yamada stated, “In setting up the new national sales company, Mazda will provide customer-first service in all activities to win high customer satisfaction and strive

at attain a top-level of quality sales network.”

FMSC is the national sales company to distribute Mazda-branded products in the Chinese

market. It started with 100 million yuan (1.4 billion Japanese yen) and FCC, Mazda, andFAW took stakes of 70 percent, 25 percent and 5 percent, respectively. There are

currently 127 employees.

Mazda has shown explosive growth in production and sales since it started full-scaleoperation in the Chinese market in May 2001. Mazda’s China sales were 80,075 units in

2003 (up 248 percent from the previous year) and 97,132 units in 2004 (up 21 percent).

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