Mazda will unveil a new Mazda5 at next year's Geneva motor show and is also working on a smaller crossover-type SUV based on current Mazda3.

Jeffrey Guyton, president and chief executive officer of Mazda Motors Europe, explained that newly developed models would not be niche.

He said: “Any new model we develop has to be global to achieve the necessary volumes.”

Mazda plans to launch new petrol and diesel engines from 2011 that will be 20% more efficient than Mazda's existing engines largely thanks to better combustion technology.

Guyton said: "New vehicle platforms and lightweight engineering will further improve that by 2015 when our target is a 30% improvement in economy for all our cars.”

The new CX-7 diesel, unveiled at the Frankfurt show, gives Mazda a chance to expand its appeal. "It's like having a new market since it gives us an opportunity to increase our fleet business," he said.

Increasing fleet business is one way Mazda will begin its recovery.

Guyton said: “The UK is a success for fleet business but it's not the same elsewhere in Europe in markets like Germany, Spain and Belgium."

Guyton predicts the European car market will fall to around 13 million units in 2010, from an estimated 15 million this year as scrappage schemes end.

He said: "I don't see any dramatic recovery. Western European markets will remain flat and eastern European markets will be very low or at the best down."

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