Mazda contemplates new model to be slotted below Mazda2

Competition in the car markets is getting tough and while automakers are up to their necks trying to retain market shares, they also open up opportunities for new market shares. Latest reports have emerged, saying that Mazda is currently in contemplation to launch a new model that would be positioned below the Mazda2, tentatively dubbed as Mazda1.

If Mazda gives the production go-ahead, the Mazda1 will not only be sold in established markets but emerging markets as well. On the flip side of things, it is likely that this model will not be out before 2015.

Mazda's CEO Yasuhiro Aoyama said the company has two paths to go: they either launch a car similar to the Volkswagen Up! or they create a budget model specially designed for emerging markets, but with some chances of reaching other territories as well.

Mazda may look to foster a partnership with another company in bid to reduce production costs. Despite Mazda's long history with Ford and the fact that they share the same platform for the Mazda2 and Ford Fiesta, Mazda may collaborate with Fiat for this potential entry-level model. The Japanese firm will also share the chassis of the next-gen MX-5 with a future Alfa Romeo