Mazda unveiled today a new, naturally aspirated MZR 1.3L Miller-cycle engine, which will power the all-new Demio (known as the all-new Mazda2 in overseas markets) when it goes on sale in Japan in July 2007. With the new engine, Mazda Demio will achieve a 10-15 mode fuel economy of 23.0 km/L, an improvement of approximately 20 percent over the 19.2 km/L rating of the current model.

The new engine was developed from the current MZR 1.3L DOHC aluminum engine. It employs delayed closing of the intake valves in order to reduce pumping losses and improve thermal efficiency through a higher expansion ratio. Intake valve timing is optimized by the Sequential Valve Timing System to provide improved fuel efficiency over the current MZR 1.3L engine when cruising and accelerating. In conjunction with the CVT, which transfers torque at low speeds without power loss and eliminates gear-shift shock, the setup achieves excellent fuel efficiency as well as a smooth and exhilarating ride.

Also the all-new Demio has been made approximately 100 kg lighter than its predecessor through weight reduction techniques, which have resulted in nimble handling and significantly improved fuel economy.