Mazda Motor Singapore is relinquishing the distributorship of Mazda cars in Singapore, after almost 50 years.

Mazda Motor Singapore has held the distributorship for Mazda cars in Singapore since 1956, when it started as Asia Motor before changing to its current form in 1984. However, the shrinking new car market has forced the family-owned business to relinquish the franchise, which it will do so by the end of next month.

Mazda has been facing dwindling sales since 2009, when the sharp reduction in COEs saw increased competition in the sector. Mazda opened a second showroom in Alexandra Road last year to complement its existing facility in Kampong Ampat Road, off MacPherson Road, but the company struggled to retain sales.

Mazda Motor Singapore is now likely to be handing over the reins for Mazda in Singapore to the Eurokars Group, which represents brands like Porsche, Rolls-Royce, MINI, Saab and Opel in Singapore. Eurokars, led by businessman Mr. Karsono Kwee, also operates three Mazda dealerships in Jakarta.