The next-generation Mazda CX-5 will receive an all-new petrol engine, marking the brand’s latest commitment to offering combustion-powered cars for the foreseeable future.

It said the new unit would be named the Skyactiv-Z, suggesting it will replace the 183bhp Skyactiv-X four-pot offered in the current CX-5, Mazda CX-30 and Mazda 3.

Mazda added that the Z engine will comply with the incoming Euro 7 emissions standards and that it will be paired with a hybrid system in the CX-5. It will also feature fewer engine control units (ECUs) and different types of control software to simplify development and production, cutting costs.

The new CX-5 is due to launch in two years.

Meanwhile, Mazda reduced its investment in electrification from ¥2 trillion to around ¥1.5 trillion (from £10.2 billion to £7.7 billion).

It said it would scale back its spending on electrical architectures, hybrid systems and battery management, instead relying on partnerships with other manufacturers such as Toyota and China’s Changan.

Indeed, Mazda’s deal with Changan has already yielded a new electric car, the 6e saloon. 

The 6e will be followed by an electric SUV developed by Mazda in-house, due around the same time as the next CX-5. It will be assembled in Japan and will use batteries designed in collaboration with Panasonic. 

Announcing the leaner electrification strategy, Mazda president and CEO Masahiro Moro said: “While a large amount of investment is required for batteries, demand is highly uncertain. We will implement careful and efficient investment while monitoring technical innovation.”

Moro added that the revised plan is designed to “minimise business risks and improve business efficiency”, reflecting Mazda’s position as “a small player”.

"As a Japanese car maker, we will boldly increase our areas of co-operation to maintain our international competitiveness," said Moro.