The first-generation Mazda2 (DY), sold as the Mazda Demio in Japan, represents a transition phase for Mazda's supermini segment. Adopting a tall, boxy, mini-MPV silhouette, it was built on the Ford B3 platform, sharing its underpinnings, suspension, and several powertrains with the Ford Fiesta Mk5 and Ford Fusion. This architecture grants the Mazda2 DY surprisingly sharp handling and excellent interior space for its footprint. A mid-cycle facelift in 2005 introduced revised headlights, clearer taillights, and much-needed upgrades to the interior plastics and sound deadening. While the petrol engines are predominantly Ford Sigma derivatives (in Europe) or Mazda Z-engines (in Japan), the sole diesel offering—the 1.4 MZ-CD—is a product of the PSA-Ford joint venture (1.4 HDi / TDCi).
The Mazda2 (DY) is a highly practical, fun-to-drive, and generally robust supermini, largely thanks to its Ford Fiesta underpinnings. However, when it comes to the 1.4 MZ-CD diesel, extreme caution is advised. While incredibly frugal, this PSA-sourced engine is notorious for injector seal failures ('Black Death'), EGR faults, and fuel line air leaks. Unless you are buying a diesel with documented proof of recent injector seal replacement and a clean bill of health, it is highly recommended to opt for the 1.25, 1.4, or 1.6 MZI petrol engines instead. The petrol variants offer vastly superior reliability with only a marginal penalty in running costs, making them the definitive choice for this generation.