Mazda will bring the Mazda 2 small car to the U.S. market starting late next year, the Japanese automaker said on Thursday.

The Mazda 2--named Demio in Japan--also will be sold in Canada. The car will compete against vehicles such as the Honda Fit, the Nissan Versa and the upcoming Ford Fiesta in the B-car segment. The Mazda 2 and the Fiesta share the same platform.

“As consumers' tastes and attitudes toward small vehicles have changed, we now believe strongly there is a place in our lineup for a car below our current least-expensive car, the Mazda 3,” Jim O'Sullivan, Mazda North American Operations president, said in a statement.