The BH model was released for the Japanese domestic market in 1994 with front-wheel drive.
Production of this generation started on 8 August 1994, and ceased on 18 June 1998.
The sedan version was sold as the Protegé in North America, as the Mazda Artis in some South American markets, as the "Mazda Étude" in South Africa.
Originally there was a sporty coupé-style three-door hatchback (323C/Familia Neo) available, but after sluggish sales a more traditional, upright hatchback version based on the facelifted Familia sedan replaced it.

An unusual JDM model appeared in 1994, with the cancellation of the 1985-generation station wagon.
The Mazda Familia van offered after this year was a rebadged Nissan Wingroad/Sunny California, which was essentially the station wagon version of the Nissan Sunny N14.
Another loan was the 1.7-liter intercooled turbodiesel engine purchased from Isuzu for use in sedans after August 1995.
These models have a prominent hood scoop.
At about the same time a four-wheel-drive model was introduced in Japan, either with a 1.6-liter petrol or the Isuzu turbodiesel.
The 4WD cars can be easily told by having been equipped with the federalized front (but not rear) bumper, including side marker lights.

This generation of Familia grew considerably, with the four-door sedan's wheelbase only a few millimetres short of the then-current Toyota Camry, a mid-size car.
The car was not originally offered with a 1.3-liter engine in Japan, with the lineup beginning with the bigger 1.5.
To close this gap in the lineup, the BG hatchback with the 1.3 was kept in production until October 1996, when the new hatchback model was introduced (323P) and the smaller engine was made available.
A new model appeared in August 1995, when a lean-burn version called the GS-L arrived: its Z5-DEL engine produces 94 PS (69 kW), three down on the regular Z5-DE, but gas mileage improved by ten to fifteen percent.

The rare North American ES model came with the Miata's 1.8-liter twin-cam engine (though the internals were not entirely the same), all-wheel disc brakes, and dual stabilizer bars.
The same car went on sale in Australia in the second half of 1994 with a fully featured BP-ZE engine.
The Protegé became classified as a "compact car" for the 1995 model year in North America.

A MazdaSpeed version was released in Japan and Philippines.
It came equipped with MazdaSpeed wrap around bodykit, MazdaSpeed rear spoiler, Momo steering wheel, 15-inch Rota Astral wheels wrapped in 195/55R15 Bridgestone Potenza RE01 tires, MazdaSpeed strut tower bar, Eibach springs, gas-charged shock absorbers, swaybars and MazdaSpeed exhaust made by Yumex.

The Familia/Protegé/323 was facelifted in 1996, with a newer somewhat more aggressive style.

Engines
1994–1998 – 1.5 L (1,500 cc) Z5, FI, 16-valve DOHC, 89 hp (66 kW; 90 PS) / 97 lb⋅ft (132 N⋅m)
1994–1998 – 1.6 L (1,597 cc) B6D
1994–1996 – 1.8 L (1,800 cc) B8, 114 hp (85 kW; 116 PS) / 115 lb⋅ft (156 N⋅m)
1994–1996 – 2.0 L (2,000 cc) KF V6, FI, 24-valve DOHC, 144 hp (107 kW; 146 PS) / 132 lb⋅ft (179 N⋅m)
1995–1999 – 1.3 L (1,300 cc) B3, 74 hp (55 kW; 75 PS) / 77 lb⋅ft (104 N⋅m)
1995–1999 – 1.8 L (1,800 cc) BP, FI, 16-valve DOHC, 131 hp (98 kW; 133 PS) / 118 lb⋅ft (160 N⋅m)
1995–1999 – 2.0 L (2,000 cc) RF, Diesel, 8-valve, 71 hp (53 kW; 72 PS) / 94 lb⋅ft (127 N⋅m)
Models
Four-door sedan (called the Protegé in North America, 323S in Europe, 323 Protegé in Australia and Étude in South Africa)
Three-door coupé hatchback (Familia Neo in Japan, 323C in Europe, Laser Lynx as a Ford)
Three-door hatchback on 323S-basis, called 323P in Europe.

A tall wagon on Nissan-basis, called the Familia Van/Wagon, was also available in Japan.
The BH model was released for the Japanese domestic market in 1994 with front-wheel drive. Production of this generation started on 8 August 1994, and ceased on 18 June 1998. The sedan version was sold as the Protegé in North America, as the Mazda Artis in some South American markets, as the "Mazda Étude" in South Africa. Originally there was a sporty coupé-style three-door hatchback (323C/Familia Neo) available, but after sluggish sales a more traditional, upright hatchback version based on the facelifted Familia sedan replaced it.
An unusual JDM model appeared in 1994, with the cancellation of the 1985-generation station wagon. The Mazda Familia van offered after this year was a rebadged Nissan Wingroad/Sunny California, which was essentially the station wagon version of the Nissan Sunny N14. Another loan was the 1.7-liter intercooled turbodiesel engine purchased from Isuzu for use in sedans after August 1995. These models have a prominent hood scoop. At about the same time a four-wheel-drive model was introduced in Japan, either with a 1.6-liter petrol or the Isuzu turbodiesel. The 4WD cars can be easily told by having been equipped with the federalized front (but not rear) bumper, including side marker lights.
This generation of Familia grew considerably, with the four-door sedan's wheelbase only a few millimetres short of the then-current Toyota Camry, a mid-size car. The car was not originally offered with a 1.3-liter engine in Japan, with the lineup beginning with the bigger 1.5. To close this gap in the lineup, the BG hatchback with the 1.3 was kept in production until October 1996, when the new hatchback model was introduced (323P) and the smaller engine was made available. A new model appeared in August 1995, when a lean-burn version called the GS-L arrived: its Z5-DEL engine produces 94 PS (69 kW), three down on the regular Z5-DE, but gas mileage improved by ten to fifteen percent.
The rare North American ES model came with the Miata's 1.8-liter twin-cam engine (though the internals were not entirely the same), all-wheel disc brakes, and dual stabilizer bars. The same car went on sale in Australia in the second half of 1994 with a fully featured BP-ZE engine. The Protegé became classified as a "compact car" for the 1995 model year in North America.
A MazdaSpeed version was released in Japan and Philippines. It came equipped with MazdaSpeed wrap around bodykit, MazdaSpeed rear spoiler, Momo steering wheel, 15-inch Rota Astral wheels wrapped in 195/55R15 Bridgestone Potenza RE01 tires, MazdaSpeed strut tower bar, Eibach springs, gas-charged shock absorbers, swaybars and MazdaSpeed exhaust made by Yumex.
The Familia/Protegé/323 was facelifted in 1996, with a newer somewhat more aggressive style.
Engines
1994–1998 – 1.5 L (1,500 cc) Z5, FI, 16-valve DOHC, 89 hp (66 kW; 90 PS) / 97 lb⋅ft (132 N⋅m)
1994–1998 – 1.6 L (1,597 cc) B6D
1994–1996 – 1.8 L (1,800 cc) B8, 114 hp (85 kW; 116 PS) / 115 lb⋅ft (156 N⋅m)
1994–1996 – 2.0 L (2,000 cc) KF V6, FI, 24-valve DOHC, 144 hp (107 kW; 146 PS) / 132 lb⋅ft (179 N⋅m)
1995–1999 – 1.3 L (1,300 cc) B3, 74 hp (55 kW; 75 PS) / 77 lb⋅ft (104 N⋅m)
1995–1999 – 1.8 L (1,800 cc) BP, FI, 16-valve DOHC, 131 hp (98 kW; 133 PS) / 118 lb⋅ft (160 N⋅m)
1995–1999 – 2.0 L (2,000 cc) RF, Diesel, 8-valve, 71 hp (53 kW; 72 PS) / 94 lb⋅ft (127 N⋅m)
Models
Four-door sedan (called the Protegé in North America, 323S in Europe, 323 Protegé in Australia and Étude in South Africa)
Three-door coupé hatchback (Familia Neo in Japan, 323C in Europe, Laser Lynx as a Ford)
Three-door hatchback on 323S-basis, called 323P in Europe.
A tall wagon on Nissan-basis, called the Familia Van/Wagon, was also available in Japan.
Mazda Familia