A fresh report out of the United Kingdom suggests Mazda will replace its Mazda2 small hatchback with a rebadged Toyota Yaris by 2023.

According to Autocar, Mazda will introduce a “restyled” version of Toyota’s hybrid-powered Yaris to replace its ageing supermini. The report suggests the new Yaris-based model will be produced by Toyota in France, with the hybrid powertrain helping Mazda to meet its European Union emissions targets.

The Yaris offered in Europe is, of course, distinct from the Asian-spec Yaris available here in South Africa.

“We’re continuing with our multi-solution approach that offers appropriate solutions to match power mix, uniqueness and customer needs in each country and region,” Mazda told Autocar in a statement.

“As one of the multi-solution measures, we concluded that the THS [Toyota Hybrid System] is the optimum solution to respond to each region’s needs and requirements.

“This collaboration is the result of discussions based on our Toyota-Mazda partnership policy to use both companies’ business resources efficiently while respecting each other’s brand and management independence.”

For the record, the fourth-generation Mazda2 (which has been badged as the Demio, too) was unveiled in 2014. Interestingly, the since-discontinued Yaris for North America was based on that model.