The need for small cars was identified at the end of Second World War especially in Japan. It was because of the fact that most Japanese could not buy the normally sized cars offered. They had more money than a motorcycle costs and wanted the advantage of car. This led to identification of a market by Japanese local companies for a market previously untapped. Though the market had shrank a bit now, but the history tells us that best were tried for small cars and even in 2013 we see a lot of them still satisfying the chunk of customers who need one.
The Beginning to 70s Strategies
Initially the limit for such small size car was 150 CC in the year 1949 though the dimensions and engine size continuously improved in coming years. The change of displacement happened in 1955 which had the upper limit of 360 CC. The 70s brought in boom in industry with Honda and Mazda entering in market with full bash. Sales increased drastically with both passenger and commercial vehicles manufacturing at peak.
The mid 1970s brought in decline to sales at consistent pace. This resulted in passenger car withdrawal by Honda and Mazda, although the commercial units were still being produced in restricted quantity. This was the tenure when the Kei car limit increased to 550 CC with a bit more relaxation in dimensions and much more. It was an initiative by Japanese government that has been strict in the past, making a U-turn in growth of small cars business. Consequently even a better global standing improved as compare to the past.
The Government Policy
This was because of the continuous adjustment with the external factor of government policy that the automobile companies of Japan carved their niche in coming years. The basic advantage that these small car reviews tell us is that they were good in terms of fuel consumption with satisfactory level of performance. The technical side improved in 80s but the as the average Japanese target customer had recovered from the economic loss impact, the need for small cars diminished.
Even on best deals the customers were less willing to buy small car, because of the performance level. Here the global market played the role and the overall sales remain consistent as compare to the past.
The Good Days
The 1990s brought in 660 CC limit with horsepower improvement with turbos and superchargers being installed in the vehicle to make it fast and quick. This was done to make sure that small size advantage could be value added.
The year 2013, shows that the vehicle has a different market to cater and a number of companies are trying to cater it to the best. Though the compact cars are very much preferred across globe because of performance and size right combination, but the mini market of small cars is still sustained.
That is the reason we see a number of small cars still being produced. But there is a school of thought that believes in the fact that the basic spirit has diminished with the greater displacement and size increase.