The Mazda 2 light hatch and sedan may be facing the axe, with a report from the Japanese automaker saying the upcoming, second-generation Mazda CX-3 light SUV will replace it as the brand’s entry-level model.

The company published its Mazda Integrated Report 2026 earlier this week, outlining corporate plans for stakeholders, including model lineups and growth strategies.

“In 2027, we plan to introduce the next-generation Mazda CX-3, produced at our Thai factory, to the Japanese and ASEAN [Association of Southeast Asian Nations] markets,” the report said [translated from Japanese].

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“As a new-era entry-level model replacing the Mazda 2, it will expand Mazda’s value proposition in a new way.”

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However, Mazda Australia told CarExpert the company has no plans to drop the current 2 hatch and sedan, which have been on sale here since 2014 and have received two facelifts in the past 12 years.

“We can’t comment on future product plans, but we can confirm that Mazda 2 will continue to be sold in Australia well into the future.”

Globally, Mazda has not confirmed a fourth-generation Mazda 2. The nameplate was introduced locally in December 2002, replacing the 121 Metro as the brand’s entry-level hatchback.

At the 2025 Japan Mobility Show in Tokyo, Mazda showed the Vision X-Compact concept car, which echoed the shape of the Mazda 2 hatch, but said it was not necessarily a preview of the next-generation model.

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The 2 remains one of a diminishing number of petrol-powered models in the light-car segment as defined by VFACTS, alongside the Volkswagen Polo, Suzuki Swift and MG3.

The segment accounts for just 2.6 per cent of Australia's new-vehicle market so far in 2026, compared with 8.4 per cent in 2003, the first full year the Mazda 2 was sold here.

The decline comes amid a global shift towards SUVs over the past 15 years.

Since the current Mazda 2 made its Australian debut, rival nameplates including the Ford Fiesta, Renault Clio and Honda Jazz have disappeared from local showrooms.

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The CX-3 was introduced in Australia in 2015 and has become a perennial favourite, remaining a strong seller more than a decade later.

Ironically, it employs the same platform and engines as the Mazda 2, but has a higher-riding SUV body. Originally sourced from Japan, Australian-market CX-3s have come from Thailand since 2023, where they are made in the same factory as the Mazda 2.

While the SUV sales segment in which the CX-3 competes is larger than the 2’s, it still accounts for just 3.7 per cent of the market. The CX-3 outsells rivals including the Suzuki Jimny and Toyota Yaris Cross.

Earlier this year, Mazda Australia boss Vinesh Bhindi told CarExpert both models would remain in the local lineup.

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“There are some articles floating around that [Mazda 2 and CX-3] are coming to an end, and I can confirm Mazda 2 and CX-3 will be in our portfolio this year, they’ll be in our portfolio next year, and it’s an important segment for us,” Mr Bhindi said.

“At some stage there could be replacements, but right here right now those two cars, those two nameplates, are here to stay in our portfolio because they will comply with [Australian Design Rules], they will continue to be manufactured in our Thailand facility, and therefore we have access to [them].”

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