The brand will turn all its attention to passenger cars, and stop building commercial vehicles.
Facing a huge annual loss - estimated at about $1.2 billion - Mazda is poised to end development and production of new commercial vehicles for the Japanese market.
Mazda's workhorse models have dwindling demand in Japan and new vehicles will mean a major financial investment.
Mazda, which is expected to announce next week its financial loss for the March 2011-2012 period, rebadges trucks made by Isuzu, commercial vans from Nissan and small commercial vehicles from Suzuki.
However, Mazda made no mention of discontinuing commercial vehicle sales outside of Japan.
Mazda Australia spokesman Steve Maciver says there are no plans to stop BT-50 - a joint venture vehicle with Ford's Ranger made in Thailand - production of sales.
"It doesn't have any effect on Mazda Australia as the BT-50 will continue to be sold,'' he says of the plans in Japan.
Mazda plans to focus on passenger vehicles and expand its fuel-efficient Skyactiv technology across more car models.
Skyactiv is currently in the Mazda3, CX-5 and later this year in the replacement Mazda6.