The Mazda 2 hasn't really been axed. It's just that the new model is a rabadged Yaris rather than their own design, and slightly bizarrely they've carried on making the old one for a while as well.
I didn't even realise the old Mazda 2 was still on sale, the only recently registered ones I've seen in the last couple of years were the rebadged Yaris version so I thought the old design being replaced had happened some time ago.
They were still selling the 'old' design (2015+) cars up to just now, with a much reduced range of trim and engine combos. I rarely see any of the re-badged Yarises, well, because why not just buy a Yaris?
The problem for Mazda is that their post-sales operation has never had the best of reputations in the UK - similar to that of Ford in my view, a mixed bag of some good dealers, some very bad ones. At least with buying a Toyota you are much more likely to get a good dealership than a Mazda, IMHO.
Mazda had the same sale problem (i.e. practically no sales) when they 'sold' the rebadged mid 90s Ford Fiesta but with their own 1.3 engine, which didn't appear to be anywhere near as good as the Ford 'Zetec' 1.25 and 1.4 engines in the Fiesta, plus the Ford was a bit cheaper.
When their cars had their own identity, even when sharing platforms with Fords and Volvos (to some degree), they sold much more cars, especially when their engines were at least as good or better. They also benefitted greatly from the 'Zoom Zoom' image of the MX5 and great strides in handling abilities, starting with the Mazda6.
I think in later years, they dropped the ball to some degree by going 'up market' but without keeping that decent amount of performance compared to rivals, at least here in the UK. The 2L SA-G turbo engine was never used in the 3 and 6 as elsewhere, and the SA-X engine has yet to be scaled up or down to replace the 'ok' N/A 1.5 and 2L petrol SA-G engines.
Their diesel-related problems obviously have not helped in the euro market, not so bad in those other markets I mentioned because diesels aren't anywhere near as popular there, outside of in proper off road vehicles.
I suspect those issues cost them a significant amount of sale over here. Most new Mazdas on the road now tend to be mostly CX-5s, a few CX-30s, MX-5s and CX-60s.
As I said before, there's also little incentive for manufacturers to sell ICE cars that are C-sector and below that aren't either 'posh' and/or performance models, as well as being some kind of hybrid, because of the EV mandates. Mazda seem to sell precious few MX-30s.
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