WRAPS have come off the new Mazda2 which will go on sale in Australia late this year.

The all-new Mazda2 will be available with a range of three different engines, dependant on market, including Skyactiv-G 1.5 and 1.3-litre petrol engines, or a Skyactiv-D 1.5 litre diesel engine.

Mazda says there are a host of improvements packed into its compact body and Kodo design giving the car the look of a living creature and imparting a presence unrivalled in the class.

Developed around the same engineering concepts as those in larger next-generation models, new Skyactiv engines, transmissions, body, and chassis, allow the All-New Mazda2 to provide both improved safety and fuel efficiency while enhancing the all-important fun-to-drive factor.

The All-New Mazda2 line-up offers a range of cutting-edge technologies such as MZD Connect, Mazda's next-generation car connectivity system.

Available for the first time on Mazda's smallest model are advanced safety features that aid the driver in recognising and responding to hazards.

Production of All-New Mazda2, which has been fully redesigned for the first time in seven years, has begun at Mazda's Yamaguchi plant in Japan.

Following the Mazda CX-5, Mazda6 and Mazda3, the All-New Mazda2 is the fourth in Mazda's line-up of next-generation models which adopt the full range of Skyactiv technology and "Soul of Motion" design philosophy.

Mazda2 has been Australia's favourite light car two out of the past three years.