Mazda is aiming to build a U.S. sales network that can sell 400,000 units per year in 2021. To that end, we will promote qualitative growth through higher brand engagement and medium- to long-term quantitative growth, and will reinforce investment in realignment of the sales network.
Looking back at our initiatives to date, over the two-year period from 2016 we worked to reestablish our sales network based on Mazda brand value management. The objective of these initiatives was to increase the quality of dealerships, so that our locations and staff create exciting venues that draw customers who look forward to engaging with products that they truly want. Specifically, we implemented a conversion to strong dealers who endorse Mazda’s brand value management, and began to establish next-generation branded dealers. In addition, we created a roadmap for the reestablishment of the optimal sales network in 35 priority markets. Results to date include steady improvements in repurchase rates, sales of certified pre-owned vehicles, service retention, and dealer profitability. Business quality is improving. We will continue working to improve the customer experience through enhanced training for dealer staff and trade cycle management initiatives. In these ways, we will improve residual values, keep incentives in check, and achieve “right price” sales. Over the period to 2021, we will execute network enhancement and focus on growth in priority markets. Specifically, we will expand to 300 next-generation branded dealers, mainly in 35 priority markets. We will also strive to achieve an average of 1,000 unit sales per year among next-generation branded dealers and a repurchase rate of 55 percent in 35 priority markets. At the same time, we will overhaul our marketing strategy and roll out a strategy that addresses the characteristics of each market.
We will implement these initiatives and accelerate the construction of a U.S. sales network that can sell 400,000 units per year by 2021, when the U.S. plant will start operations. In these ways, we will advance quantitative growth over the medium to long term.