The first version of the new Mazda2, known as the Demio in Japan, has rolled off the production line at the manufacturer’s Ujina plant near Hiroshima.
Sales of the new car are due to begin in summer this year.
Around 550 people gathered at the factory to mark the vehicle’s inception, including Mazda’s executive vice-president Robert J Graziano, union representatives and employees.
Mr Graziano commented: "The all-new Mazda2 is the first of Mazda’s new generation products to evolve to the next stage. While the current model was intended for the domestic market, the new model has been developed into a globally competitive car."
The Mazda vice-president said that he was "convinced" that the new model will "capture the hearts" of customers the world over and said that the firm will continue to build cars with an emphasis on safety and environmental responsibility.
Mazda’s new vehicle is reportedly among the most fuel efficient in its class, as weight reduction work has made it 100kg lighter than its predecessor.
It also adheres to demanding modern regulatory requirements while meeting customer needs for quality styling, according to the automaker.