In an attempt to cut costs, it seems that more and more drivers are opting for very small cars last year, The Telegraph has learned. In fact, statistics show that the demand for small cars increased by 47.3 percent last month when compared to the same period last year, while the motor industry on the whole suffered major losses with sales down by more than a fifth compared to this time last year.
Experts say that the demand for cars belonging to the small segment has been boosted by the launch of models like Toyota iQ, the Hyundai i10 and a new smart fortwo.
"I think it tells us what people are going for in this market," explained Mike Allen, motor industry analyst with the stockbrokers, Panmure Gordon. "We are seeing a trend which shows the prestige end of the market on its backside, while there is demand at the other end for cheap cars, " he added.
People seem to opt for such cars because of at least two reasons: they are cheap to buy and have low running costs. These two reasons are essential as people encounter difficulties in obtaining loans these days.
"There is definitely an element of people trading down. Smaller cars are not so reliant on people raising finance, so there is a better chance that customers will pay cash," Allen said. "Also these cars have a decent reputation and do represent good value for money," he added.
However, among the "superminis" there are three larger models that seem to have fallen from buyers' top preferences: the Ford Fiesta, Vauxhall Corsa and the Mini. Sales for these models have dropped by 12 percent compared to February last year.
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