Mazda entered the supermini car-segment with the 121 model in 1987.
It was sold in Australia and unveiled in Europe at the 1988 Geneva Motor Show.

In 1987 Mazda already had some interesting models on the market, and its main contender was the compact hatchback 323. But the Japanese car-maker needed something smaller for the European market. Ford owned a big part of Mazda at that time and it already had the Fiesta on the market. In the end, the Japanese brand had to open its small-segment car-market, and it did it with the 121. Ford also sold the patent for the car to the Kia, which built the Kia Pride.

Small, practical, and cheap, were the main characteristics of the first generation of the Mazda 121. The flat body panels were inexpensive to build and the whole car was designed and engineered for a low price. The 121 featured a canvas roof as an option (top-cabriolet) that made the car more fun in the city.

Inside there were only a few options to choose from, but it featured a stereo and adjustable steering column. The interior was designed with a sliding rear bench so the car could get more trunk space which, otherwise, was almost non-existent.

For the engine, the Mazda 121 offered a 1.3-liter engine in Australia and a 1.1-liter for the European version. Both engine versions were mated to a 4-speed manual transmission.