2003 Mazda Demio Stardust Pink Limited Edition

The Demio was redesigned in 2002 on the DY platform. The Demio name continued in Japan, while the rest of the world dropped Demio and other names in favor of Mazda2. The badge-engineered Ford version is no longer made, as Ford began importing the Fiesta into Japan. It is based on Ford's Fiesta on the Global Ford B3 platform which is based on Mazda's DY platform. The car is produced for Europe at a Ford plant in Valencia, Spain. North American sales of the Mazda2 are expected to start in 2007, where other subcompacts (Toyota Yaris, Nissan Versa, Honda Fit) will also debut. It will fill the gap in Mazda's subcompact line since the Mazda 323 hatchback was discontinued for North America in the mid-1990s.

All Demios come with ABS and EBD, and stability control is optional. An innovative feature offered in Japan is e-4WD, a hybrid car-type system which uses an electric motor to power the rear wheels of this front wheel drive vehicle when needed. In the Demio, this system is used only as a traction aid, not for increased fuel economy as in most other vehicles.

Three trim levels are available, each targeted by Mazda at a different demographic:
Cozy for single women with special paint colors and an optional canvas sunroof
SPORT is for young men
Casual focuses on young families

The Mazda2 is sold with a variety of Z-family engines:
1.3 L ZJ-VE I4
1.5 L ZY-VE I4
1.25 L MZI
1.4 L MZI
1.6 L MZI
1.4 L MZ-CD Diesel
1.4 L MZ-CD Diesel