Electrified vehicles — including hybrids and battery EVs — have taken over almost a third of the market in China. “The new trend is faster than we — and many — have expected,” Mazda chief financial officer Jeffrey Guyton told reporters in a post-earnings briefing Tuesday.

Toyota Motor Corp, Nissan Motor Co and other Japanese carmakers had been making inroads into China over the past two decades. Caught off guard by the rapid growth of BYD Co, Tesla Inc and local rivals taking advantage of access to supplies and labor, they are now rushing to make up for lost ground.

Revenue rose 77% to ¥1.09 trillion (US$7.6 billion) during the quarter that ended June in all major markets, except China and Southeast Asia.

Operating profit for the period was ¥30 billion, short of analysts’ average estimate of ¥58 billion. For the current fiscal year, the carmaker left its profit and sales forecasts unchanged at ¥180 billion and ¥4.5 trillion.

Global production rose 36% to 284,000 units, while sales fell 17% to 20,000 units in China.

Revenue from larger models — including SUVs such as the CX50, CX60 and CX90 — made up almost double the unit share of other products, according to Guyton.

Relaxed pandemic lockdowns in Shanghai, improving supply and global rebound in vehicle demand helped shares climb across North America, Europe, Australia and Japan, the CFO said.

“All of these factors are driving our revenue to higher levels,” Guyton said.