Mazda claims it has developed a catalyst that uses up to 90 per cent less platinum and palladium and will help to boost its cost competitiveness amid rising materials prices.
Mazda, 33.4 per cent owned by Ford Motor, says it has developed the first catalyst for cars using technology that lets it cut the use of the expensive metals, while maintaining performance. The catalyst is used in the production of catalytic converters.
The development comes as carmakers have been rushing to cut their materials costs, amid a demand surge that has pushed up commodity prices.
Vehicle makers are also reviewing their materials spending to develop low-cost cars for emerging markets.
Japanese vehicle makers are renowned for their low-cost production, but plans by Tata, the Indian group, to develop a car for less than €2,000 have put pressure on Japanese groups to reduce costs even more, says Hirofumi Yokoi, an analyst at CSM Worldwide, an automotive research group, in Tokyo.
In addition to the high cost of precious metals used in catalysts, there is concern about dwindling sources of palladium.
Mazda says the new catalyst material would maintain "the same level of purifying efficiency".
The Japanese firm has also revealed a new concept car, the Mazda Taiki, equipped with a next-generation rotary engine.
It will be unveiled to the public at the Tokyo motor show later this month.
The Taiki is an evolution of the firm's earlier design concept vehicles and may suggest some styling touches for the next generation RX-8 sports car.
Mazda already has a prototype hydrogen version of its RX-8 and will let visitors to the motor show test drive the vehicle, as part of its overall theme of "sustainable zoom-zoom".