Mazda on CX-5: Style and size matters

Mazda Australia has downplayed the sales impact of launching the third generation CX-5 medium SUV without an electrified option, pointing instead to its increased size and appeal to family buyers.

The new CX-5 will go on-sale in Australia in the second half of 2026 with a detuned version of the current 2.5-litre naturally aspirated petrol engine combined with all-wheel drive as its only powertrain, lining it up against a phalanx of opposition that have hybrid and plug-in hybrid options.

A Mazda-developed Skyactiv-Z petrol-electric hybrid powertrain will be added to the line-up sometime in 2027.

“Mazda continues to offer a multi-solution approach to reduce emissions and improve efficiency,” said Mazda Australia managing director Vinesh Bhindi.

“The new 2.5-litre powertrain is an important component of this strategy, alongside Mazda’s new hybrid system, which will be revealed at a later date.

“Consumers continue to demand naturally aspirated engines, and we will continue to hone and enhance this technology as long as demand is there.”

Bhindi bullishly forecast continued segment-leading sales for the new CX-5, predicting a combination of attributes including its evolutionary ‘Kodo’ exterior design and larger interior size would keep it amongst the leading contenders in Australia’s biggest new vehicle segment.

“The strength of this car is its design from day one, so we did absolutely go out of our way to ensure that the design and the appeal of the design remains a key part of this program,” he said.

Bhindi confirmed Mazda Australia had input into the design direction and encouraged an evolution, not revolution.

“I’m sure there’d be some people considering that it had to be something very different,” he said. “We felt just trying to be different for different sake wasn’t the requirement.”

Instead, the Australian focus was on more substantial interior change.

“From our point of view where there was opportunity was more in the interior in terms of materials, craftsmanship, updates in the technology… but also cabin room.

“We know this is a car not just for couples but also for family with smaller kids, and therefore packing around luggage whether it be prams or bags was critical, so comfort in the rear and also rear cargo space was critical.

“Size will no longer be an issue for someone who wants a medium SUV when it comes to CX-5.”

Since first launching in Australia in 2012, more than 316,000 CX-5s have been sold here and it was the number one selling SUV from 2013 to 2019.

Even in its dotage, the current CX-5 is still Mazda’s top-selling local model and second in sales in the mid-size SUV segment behind only the Toyota RAV4, which is also renewed in 2026 and adds a PHEV.

“In terms of expectation for this car, this car has remained in the top tier in terms of volume of sales from 2012 most years,” said Bhindi.

“Sometimes it’s top, sometimes it gets a podium position… And we expect to hold that position with this car and the value package we will offer.”

While Bhindi was talking up the new CX-5’s value, he conceded the pricing entry point would go up with the deletion of the entry-level 2.0-litre engine and front-wheel drive.

“I think that’s a fair assumption,” he said.

He also conceded the hybrid powertrain, which will be widely available across the range, will be more expensive than the 2.5-litre.

“It’s always going to have more gear in, which means more costs,” he said.

But he expressed no regret about dropping the cheapest engine from the line-up.

“We believe the demand is more on the all-wheel drive powertrains from the feedback we’ve seen from customers, so that’s where we’ll go.

“We will find out when we launch the car if customers are very much focused on the front wheel. And if so, then we can consider what we can do to bring that into our portfolio.

“But we don’t expect that.”

Bhindi also played down the risk of cannibalisation of CX-5 sales by Mazda’s other medium five-seat SUV, the CX-60, despite a pricing overlap.

While it currently offers more powerful six-cylinder and four-cylinder PHEV powertrains with all-wheel drive, it soon launches in a new sub-$50,000 model with the same 2.5-litre four-cylinder engine as the CX-5.

“We don’t believe so because the size is different, the [six-cylinder] powertrains are very different, the performance numbers are very different. And obviously the value proposition will be different as well because of all of those elements,” he said.

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