The Mazda 2/Demio was the second generation for the Demio name and it was based on the European Ford Fusion platform. It was the beginning of the cross-over era.
While its predecessor, which was launched in 1996, was based on the Mazda's DW platform, the 2002 version was on the DY platform, which was jointly developed with Ford. It was built to accommodate an all-wheel-drive system but to cost less than the previous one and perform better on the road. Depending on the market, the second generation of the Demio was also known as Mazda 2.
It was a cross-over between a small car and a light SUV. Its higher ground clearance and the hatchback body style was appealing, especially due to its new front fascia. The headlights style and the grille were inspired by its bigger brother, the Mazda 6. But since there were limitations regarding the body panels, the rest of the car featured a bland-looking beltline and a flat rear end.
Inside, the high roof design of the car allowed a generous headroom for the passengers. The steering-wheel had buttons for the stereo system and the overall design was clean. The high seating position and the high mounted rear bench allowed a comfortable ride for four adults. Since the car's width was not that generous, the shoulder room was hardly fit for three adults in the back.
For the engine compartment, the car was fitted with a choice of three gasoline and a diesel engine. In Japan, the car was available as a hybrid as well, with an electric motor for the rear axle and a gasoline unit in the front.