MAZDA is gearing up for a fleet sales explosion in 2003 and tax and fuel-efficient diesel engine models are set to play a significant role in winning new business.

Legislative changes from April 6 that see the tightening of benefit-in-kind tax and the introduction of a new carbon dioxide emissions-based fuel benefit charge system play to the strengths of diesel.

CO2-friendly and fuel efficient 1.4 and 2.0 litre common-rail diesel engines in the much-praised Mazda6 and the soon-to-be-launched Mazda2 supermini will be highly sought after by company car drivers and fleet decision-makers looking to make cash savings in 2003/04.

The company car tax system tightens two notches from April 6. That means the CO2 tax threshold will be reduced by 10 g/km - a further 10 g/km reduction will occur from April 6, 2004 - which will mean the lowest 15 per cent tax charge applying to cars emitting 159 g/km instead of the current 169 g/km from April.

However, the driver of a Mazda2 1.4 TDCi 67 bhp, which has a CO2 figure of 119 g/km, will see his or her tax bill unchanged, at least until April 2005, at 18 per cent.

The benefit-in-kind tax system beyond that date is not known. Therefore, the 22 per cent taxpayer at the wheel of a Mazda2 1.4 S diesel will face a tax bill of just £31.64 a month.

The driver of a Mazda6 2.0 D 119 bhp (172g/km) will pay 21 per cent tax in the forthcoming financial year and the driver of a Mazda6 2.0 D 134 bhp (174 g/km) will pay a similar rate. Fuel economy on the combined cycle for each model is 43.5 mpg.

Meanwhile, the new fuel benefit charge - applicable to employees who have a company car and are also provided with free fuel for private use - will be linked directly to a vehicle's CO2 figure.