Mazda to End Domestic Production of Mazda2 Compact Car

Courtesy of Mazda Motor Corp.
Mazda Motor Corp.’s Mazda2 compact car

Mazda Motor Corp. will terminate domestic production of its Mazda2 compact car in August, sources said Friday. Sales in Japan will cease once existing inventory is exhausted.

The move marks the end of an era for Mazda’s compact lineup in the domestic market, coming 30 years after the 1996 launch of Mazda2’s predecessor, the Demio. The automaker intends to shift its business resources toward its mainstay lineup of sport-utility vehicles (SUVs).

In 2019, Mazda rebranded the Demio as the Mazda2 to align with the name used in overseas markets. Last year, the model was Mazda’s second bestseller in Japan with 23,644 units sold, trailing only the CX-5 SUV, which saw sales of 24,518 units.

Despite its standing, sales have struggled in recent years, plummeting to roughly one-fourth of its peak. Following a prior decision to cut diesel variants in 2024, the company has now decided to end production of gasoline models at its Hofu plant in Yamaguchi Prefecture.

While the model will vanish from Japanese showrooms, production in Thailand and Mexico is expected to continue.