Mazda’s missing piece: Why the Japanese giant needs to think small to take on the MG3, Suzuki Swift and Toyota Yaris Cross | Opinion

Mazda has been on a rapid expansion in recent years, introducing so many new large SUVs it can be hard to keep up with them all.

The CX-60, CX-70, CX-80 and CX-90 form a comprehensive line-up of family-sized SUVs, and will be joined in 2026 by the new CX-5. But as we looked at what was missing from some of Australia’s favourite brands, it quickly became obvious what needs attention with Mazda.

Read more about Mazda

• Mazda's next big thing confirmed
• New Mazda CX-20 takes shape
• Mazda 2 2024 review

Both are also getting old and there is no public plan to replace them anytime soon. While Mazda may very well be working on replacements, if they aren’t it would leave a huge gap in the brand’s line-up.

While Mazda was one of the first brands to embrace the concept of ‘semi-premium’ and shift from a model of selling purely on volume and instead focus on profitability, even if it meant fewer sales, giving up this part of the market would be a risky move.

There is no question the city car market is in terminal decline, with the Mazda2 only up against the MG3 and Suzuki Swift these days, but there is still enough volume in the compact SUV market to make a CX-3 replacement viable.

More importantly, losing either or both of these models would immediately raise the cost of entry to the Mazda brand, which would lock out many first-time new-car buyers. Instead they will go and buy something else, perhaps an MG3, Chery Tiggo 4 Pro or BYD Atto 1 and get integrated into those brands’ systems — just like countless Mazda2 and CX-3 customers have no doubt done in recent years. 

The challenge for brands like Mazda in the current market situation is it is incredibly difficult to compete with the new wave of Chinese brands on price, especially at the lower end of the market. This means a generation of buyers will get familiar with these brands and could end up staying for years to come if they have a good experience.

Mazda should be well aware of that, because that’s the exact tactic that the Japanese brands used in the 1980s and ‘90s, and it’s what the South Korean brands did in the 2000s. Looking at the sales chart it’s dominated by Japanese and Korean brands, but nothing is static in this market so if Mazda abandons the small car/SUV space, it may not hurt in the short-term, but could have big consequences in the long-term.