Mazda to replace Mazda2 with a new SUV
Mazda is preparing to end development of one of its longest-running small-car model families. The Mazda2, in production since 2014, will not get a new generation in its current form, with a new CX-3 taking its place in 2027. The Japanese carmaker is opting for a taller and likely more profitable SUV over a traditional hatchback, reinforcing a trend reshaping the affordable small-car market worldwide.
New CX-3 to replace Mazda2
Mazda chief technology officer Ryuichi Umeshita confirmed in the company's 2026 business report that the next-generation CX-3 will take over the Mazda2's role as the brand's most affordable model in Japan and Southeast Asia.
Production of the new SUV will begin in 2027 at the AutoAlliance Thailand plant in Thailand, where Mazda is investing approximately €130 million to upgrade production capacity. The plant will supply Japan and ASEAN markets, as well as potentially other export regions.
The current Mazda2 went on sale in 2014 and has remained competitive with the help of several updates. Replacing it with an entirely new hatchback would require substantial investment that the lower profitability of small cars may not justify.
New SUV needs to be more fuel-efficient
Mazda has yet to disclose the next CX-3's dimensions, power output or fuel consumption.
According to preliminary information, the new model could get a mild-hybrid powertrain combining a petrol engine with a small electric motor to provide assistance. This would allow fuel consumption and emissions to be reduced without adding the cost of a large traction battery.
Mazda may take design inspiration from the Vision X-Compact concept unveiled in 2025, but the production model's final appearance has not been confirmed.
The new CX-3 is expected to compete primarily with the Toyota Yaris Cross, Hyundai Bayon and other small SUVs. Toyota already uses a full-hybrid powertrain in this class, so Mazda will need to strike a balance between purchase price, fuel consumption and driving characteristics.
Mazda2 Hybrid to remain in Europe for now
For European buyers, there is an important distinction between the two versions of the Mazda2.
The petrol-powered Mazda2 developed by Mazda itself has already been withdrawn from the major European markets. By contrast, the Toyota Yaris-based Mazda2 Hybrid continues as a separate model, using Toyota's 1.5-litre full-hybrid powertrain.
The decision not to develop a successor to the Mazda2 therefore does not automatically mean Mazda is leaving Europe's small-car segment. Nor has the manufacturer confirmed that the next CX-3 will go on sale in Europe.
Mazda's decision reflects a broader problem facing the automotive industry. A small car needs to be inexpensive, yet its development, safety systems and compliance with emissions requirements are becoming increasingly costly. A higher-priced SUV allows the same technical components to be sold more profitably.
The Mazda2's disappearance is therefore less a technical decision than an economic one. Mazda wants to reduce development costs for small models and focus on cars that can generate higher profits. For buyers, however, this means the loss of another simple, affordable hatchback.
