Mazda is looking to double its sales into Motability this year, viewing it as a "good strategic channel" and an opportunity to provide its retail network with a source of high quality used stock.

The carmaker is also returning to short term rental on guaranteed buy-back deals after a two-year absense. Both will be closely managed, with planned volumes to protect residual values. 

Mazda saw its 2009 fleet sales fall almost 15% year-on-year in a market that was down 28%.

Its fleet sales decline was exacerbated by its pull back from Motability in 2009 and daily rental in early-2008.

Now it is returning to both sectors which are expected to account for 10% of its fleet sales this year.

In 2008, Mazda sold 7,191 cars into the Motability scheme, last year that fell to just 2,268 – the majority of which were carry over sales from campaigns in late-2008. This year it says Motability sales could be as high as 5,000 cars.

“Motability is a good strategic channel that we want to be in…but we will not do business that loses money,” said Peter Allibon, Mazda UK fleet and remarketing director.

“What we saw in late 2008 and early 2009 was other manufacturers heavily discounting to clear high levels of stocks, and because we took very early production cuts when the recession started, it didn’t make sense to compete in such a cut-throat arena when we didn’t have to.”

The company is also returning to short-term rental after 24 months away. It plans to put 1,500 cars into this sector all on guaranteed buy-back deals which means it carries the residual risk.

“The decision to go into rental will be a planned volume and we will build cars to place to rental companies as opposed to use it as a channel to deal with stock issues,” said Alibon.

“We want to plan a steady flow of vehicles so that the back-end remarketing can be managed effectively and compliment the remarketing of our captive fleet to the dealer network. One of the objectives of us re-engaging in this channel is to source good used stock to our dealers, something that has been an issue for them during 2009.”

The decisions to step back into short-term rental business and Motability is part of a larger drive to increase Mazda’s fleet presence.

It said it expects an increase in company car demand from outright purchase fleets and contract hire and leasing companies.

“More businesses are receptive to the prospect of dealing with Mazda on a long-term basis than ever before,” said Alibon. “I am optimistic for 2010.”