Japanese manufacturer Mazda is set to pioneer a new engine technology next year, which will cut fuel use by 30 per cent and go without spark plugs - according to a new report out of Japan.

Nikkei says the company will introduce the new engines towards the end of 2018 in the next-generation Mazda 3 small car, known as the Axela in Japan.

The technology, dubbed homogenous charge compression ignition, ignites the mix of fuel and air by subjecting them to high pressure which makes combustion more efficient than conventional spark plugs.

In addition to cutting fuel use, this combustion method also reduces emissions.

Mazda Skyactiv badge

After debuting in the new Mazda 3, the engine will gradually be adopted by other models in the company's line-up, likely to begin with the popular CX-5 SUV, Mazda 2 light car and Mazda 6 mid-sizer.

Nikkei reports that the new engine will be positioned as Mazda's second generation of its Skyactiv fuel-saving technologies.

Meanwhile, the Japanese publication also says the company will commence mass production of electric vehicles by 2019 and plans to offer a plug-in hybrid from 2021, mainly targeting the US and European markets where emissions targets are getting increasingly stringent.

Stay tuned to CarAdvice for more updates.