New Mazda2 from $14,990

Mazda Australia has launched its biggest, safest and most efficient light car ever with a bargain-basement starting price of just $14,990 plus on-road costs.

The move, which will see the all-new Mazda2 undercut all of its direct five-door hatchback rivals except the Honda Jazz (also from $14,990), means three variants will go on sale from November 1 priced between $15,000 and $22,000.

Demonstrating the Japanese brand's determination to return to leadership in the light-car segment, Mazda has also announced national drive-away pricing for all models, at $16,990 for the base Neo, $18,990 for the mid-range Maxx and $21,990 for the new Genki premium variant.

Mazda says the new model's extra equipment means the Neo brings $1200 of extra value compared to its predecessor, with the Maxx and Genki bringing $1500 and $2000 worth of extra standard features respectively.

"We expect to sell 13,000 new Mazda2s next year, and to sit near or at the top of the light-car class," said Mazda Australia marketing chief Alastair Doak.

But the third-generation Mazda2 line-up, which also comes with two new 1.5-litre direct-injection four-cylinder petrol engines, isn't just cheaper.

It's also the most economical Mazda2 ever, consuming as little at 4.9L/100km in high-output automatic guise – 28 per cent better than its predecessor and matching the equivalent 81 TSI DSG version of Volkswagen's benchmark Polo.

However, although all Polos require 95 RON premium unleaded, other versions of VW's smallest model are even more efficient at just 4.8L/100km.

Manual versions of the new high-output Mazda2 consume 5.2L/100km, while the low-output engine consumes 5.4L/100km (manual) and 5.5L/100km (auto) – 15 per cent less than before.

Apart from being the most frugal ever, the new 2 is also the most powerful ever, with the standard engine delivering 79kW at 6000rpm and 139Nm at 4000rpm (up from 76kW/135Nm) and the high-spec engine offering 81kW/141Nm at the same revs.

That's the same power peak as the premium Polo's 81kW 1.2-litre turbo-petrol engine, which produces more torque (175Nm), while the base Mazda2 offers more power but less torque than the equivalent Polo (66kW/160Nm).

The standard 16-valve DOHC S-VT engine runs 12.0:1 compression and is fitted only to the entry-level Neo.

Fitted to mid-range Maxx and top-shelf Genki models, the 'high-spec' SKYACTIV-G 1.5 comes with 13.0:1 compression, a 4-2-1 exhaust and 'i-stop' idle-stop.

All three model grades are available with both six-speed manual and automatic transmissions (up from five- and four-speed respectively), the latter costing $2000 extra.

Like the Polo, the base Mazda2 Neo rides on 15-inch steel wheels and also comes standard electronic stability control (DSC), anti-lock brakes, emergency stop signal, hill launch assist and twin front, front-side and curtain airbags.

All new Mazda2s are also available with Smart City Brake Support (SCBS) low-speed automatic emergency braking, for an extra $400.

Also standard at base level is push-button starting, air-conditioning, trip computer, tilting/telescoping steering wheel, halogen headlights, power windows, driver's seat height adjustment, 60/40-split rear seatback, front vanity mirrors and a four-speaker AM/FM/CD/MP3 sound system with steering wheel controls, USB/3.5mm audio input and Bluetooth audio and phone connectivity.

Inside, the Neo comes with matte-black centre console and front door armrest panels, high-gloss black air-vent surrounds and soft-touch black front door armrests.

Priced $2000 higher, mid-range Maxx models add 15-inch alloy wheels, unique black/blue cloth seat trim, cruise control, a leather-clad steering wheel, gear shifter and handbrake, and high-gloss black centre console, front door armrest and dashboard panels.

A $200 Colour Pack option specific to the Maxx in three exterior colours (Snowflake White Pearl, Aluminium Metallic and Black Mica) includes red cloth seat trim, high-gloss red air-vent surrounds, centre console and front door armrest panels, soft-touch red front door armrests and a high-gloss white dash panel.

For a further $3000, top-shelf Genki models add 16-inch alloy wheels, front fog lights, a body-colour upper grille, chromed exhaust outlet, black seat trim and soft-touch black with red stitching for the centre console, front door armrest and dash panels.

But the Genki's biggest drawcard is its extra technology, including a seven-inch colour touch-screen and Mazda's MZD Connect infotainment system with six speakers, satellite-navigation multi-function commander control, internet radio integration (Pandora, Sticher and Aha) and Radio Data System (RDS) program information.

Other standard Genki technologies include climate-control, automatic headlights and wipers, and – in a first for the light-car segment, Active Driving Display head-up system from the Mazda3.

While lesser variants miss out on MZD Connect and Active Driving Display, the Genki flagship is better-specified than VW's Polo, all versions of which come with a smaller five-inch touch-screen but no satellite-navigation.

However, a reversing camera is only available as an accessory ($420 for Genki and $778 for other models, in which it will be fitted in the rear-view mirror), and parking sensors are also a dealer-fit option.

The only other option is Mazda's trademark Soul Red paint ($200), which joins Dynamic Blue Mica and Smoky Rose Mica in as new Mazda2 exterior paint colours, all of which attract no extra cost. The previous Mazda2's signature Spirited Green colour is no longer available.

Consistent with most of its light-car competitors, all Mazda2s come with a temporary spare wheel, but lack rear air-vents and a centre armrest, which is also available as a $480  accessory.

However, there is no front passenger seat height adjustment and Mazda Australia has chosen not to offer advanced safety aids available in other markets, including lane departure warning, blind spot monitoring and radar cruise control.

As we reported in our previous overseas reviews, the redesigned Mazda2 -- the fourth model to receive the company's SKYACTIV suite of chassis, body, powertrain and connectivity technologies -- is 160mm longer than before at 4060mm, the same 1695mm width, 20mm higher at 1495mm and rides on an 80mm-longer (2570mm) wheelbase.

Despite this, the base kerb weight rises by just 17kg, but the cabin is smaller in all dimensions except front shoulder room (up 11mm to 1351mm). Front headroom reduces by 20mm to 984mm, front legroom is down by 5mm to 1063mm, rear headroom is 15mm less at 944mm, rear shoulder room is reduced by 30mm to 1270mm and rear legroom shrinks 4mm to 874mm.

Mazda claims that body stiffness is up by 20 per cent and noise, vibration and harshness levels have been reduced by 15 per cent.

Almost 100,000 third-generation Mazda2s were sold since its launch in September 2007, at an average of about 1200 a month. That sales rate reduced to 1100 a month last year, when the outgoing Mazda2 entered run-out and was in shorter supply.

Publicly, Mazda Australia has forecast an average of 1100 monthly sales for the new 2 in 2015, when it expects the Neo to account for 40 per cent of sales, and Maxx and Genki models to comprise 30 per cent each.

Over the model's lifecycle, it forecasts the Neo's share to increase to 60 per cent, and the Maxx and Genki model mix to fall to 20 per cent each.

The new Mazda2 has not yet been tested by NCAP because it doesn't go on sale in Europe until 2015, but Mazda expects a maximum five-star safety rating. Australia is the second market to receive the new 2 after Japan, and the first to import it from Thailand.

Mazda2 pricing (plus on-road costs):

Neo -- $14,990
Neo (a) -- $16,990
Maxx -- $16,990
Maxx (a) -- $18,990
Genki -- $19,990
Genki (a) -- $21,990

Smart City Brake Support option: $400
Colour Pack option: $250 (Maxx only)