According to industry analysts, one in four new vehicle permits in Europe are currently for compact city cars like the VW Polo or Renault Clio.
"Manufacturers would be well advised not to lose sight of this segment," says Stefan Bratzel, a German-based automobile economist.
Executive boards in Wolfsburg, Cologne, Seoul and Barcelona are heeding this warning, with several automakers preparing to launch models that will give new impetus to the recently subdued compact car segment.
Kia Rio dashboard.
Major manufacturers aren't just relying on sleek and seductive designs, but are also adding in new technological features. According to Bratzel, the compact market is very price-sensitive, especially because many small cars are bought as second vehicles or by low-income families.
Even so, automakers are still bringing tech systems from higher-class vehicles into their new compact models; this is a necessary step since, as Bratzel notes, "class barriers have collapsed, especially when it comes to infotainment and connectivity features."
The upcoming generation of the Seat Ibiza is an excellent example. Despite its smaller dimensions, the new Ibiza not only offers more space than before, but also comes with a new generation of infotainment systems, along with a large touchscreen and electronic upgrades such as LED headlights.
According to Seat's parent company, VW, this is just the beginning, as the next generation of the beloved VW Polo is also on the way for late 2017.
The eighth generation of the Ford Fiesta will likewise feature new assistance systems, from pedestrian detection to automatic parking, while Toyota is planning on releasing its thoroughly revised Yaris onto European markets in the next few weeks.
Ford Fiesta.
For its part, Kia is focusing on the new generation of its Rio, which will now also be available with touchscreen navigation and emergency brake assist with pedestrian detection.
For those keen on a more basic compact model, Kia still offers an inexpensive alternative: a revamped version of the Rio's little brother, the Picanto, is also on the way for a starting price of some 10,800 dollars.
Despite the excitement about the current compact premieres, Bretzel warns that the sector remains a challenging one for automakers. "The margins for small cars are low, but customer demands are getting higher and higher," he explains.
This is especially true when it comes to engine choices. "The electrification of compact cars will be an important factor for the future of mobility in cities," says Bretzel, pointing out that batteries and electric drive capabilities will be especially important.
SEAT Ibiza.
