Mazda 2 future unclear: Japanese brand won't commit to next-generation rival for MG3, Suzuki Baleno and Kia Rio

Add the Mazda2 to the list of passenger cars facing an uncertain future.

The Australian arm of the Japanese brand has refused to reveal any plans beyond the current model, which is due to introduce its second facelift by the end of the year. The fact that the 2 has been given a second major upgrade is unusual and doesn't bode well for the long-term future of the model.

The current iteration of the city car was launched in 2014 and had a refresh in 2019. That means the Mazda2 will be in showrooms for more than a decade, which is normal for a commercial vehicle but a long lifespan for a passenger car.

Read More About Mazda 2

2023 Mazda 2 pricing and features: Updated light hatch and sedan range gets fresh look to battle MG3, Kia Rio Is the Mazda2 going electric? New Mazda EV architecture could save light hatchback from extinction Got a $30,000 limit? Don't want an MG3? Revealing and rating every affordable new car, SUV and ute for canny buyers on a budget from Suzuki Swift to Mazda CX-3 and Toyota Yaris Cross

Mazda Australia Marketing Director, Alistar Doak said the local operation will continue to sell the Mazda2 for as long as it can, but wouldn't reveal anything beyond the ageing model.

"We've got a significant update to the car coming in the next couple of months," Doak said. "Then beyond that, it's a boring answer, but we can't talk about that. It's been in our portfolio for a long time, it still plays a role globally for Mazda, just not North America."

There is a ray of hope for the Mazda2 though, with Yasuhiro Aoyama, Mazda Motor Corporation director and senior managing executive officer, telling CarsGuide in December 2022 that it could be possible for the car to go electric in the future.

It's also possible that Mazda could follow the example it has set in Europe and partner with another brand for a joint-venture city car. Mazda Europe has dropped the in-house model in favour of a rebadged Toyota Yaris Hybrid, as it is newer and meets local emissions standards.

The Australian arm of the Japanese brand has refused to reveal any plans beyond the current model, which is due to introduce its second facelift by the end of the year.

The challenge for Mazda, and many other mainstream brands, is to justify the business case for city cars, which typically offer lower margins but still demand significant investment to bring to market. However, an affordable entry-point model to a brand is also crucial as it allows brands like Mazda to attract new customers and have a better chance of retaining them with a good customer experience.

Mazda has been gradually moving more upmarket in recent years, with higher prices for several of its models, including the Mazda2 and Mazda3. When the current Mazda2 launched in 2014 the cheapest model in the range started at $14,990 (plus on-road costs), but in 2023 the entry-point to the range is $21,510 (plus on-road costs).

This creates an opportunity for new brands, especially emerging ones such as MG, to take sales away from Mazda both in the immediate and potentially in the long-term.

But Vinesh Bhindi, Mazda Australia Managing Director, isn't concerned.

The Mazda2 will be in showrooms for more than a decade, which is normal for a commercial vehicle but a long lifespan for a passenger car.

"In terms of competitors entering the market, that's not anything new," he told CarsGuide. "Australia encourages companies and brands to enter, we've got 70 brands and climbing - well ahead of places like the US. Competition is great, we don't have an issue.

"Whether it's us moving more premium or other brands creating space? I don't think that's the case, it's more about Australia as a country [has] less tariffs to enter and less tariffs to exit, companies see an opportunity and Australians love choice.

"Each company will see an opportunity from their point-of-view and their strengths, and I don't have any insights into what they're seeing in Australia and what they'll do but they'll find their fans. That's not a problem and we don't have any concerns."