Host of new models jostling for position in small car segment

By Thomas Geiger Feb 8, 2012, 3:06 GMT

Turin, Italy - A host of new models are hitting the showrooms in the small car segment this year with Volkswagen leading the trend with the new Up, which marks the beginning of a new family of small city cars.

'These cars are thrifty and cheap so that enough money is left for expensive extras,' according to Nick Margetts from Jato Dynamics, which analyses the market. 'Even the premium carmakers are finding favour with small cars,' he said.

The basic Up sells in Germany for just under 10,000 euros (13,180 dollars). It measures 3.54 metres and customers currently have the choice between a 44 kW/60 hp and 55 kW/75 hp version with a top speed of 171 km/h. For the future the carmaker is planning an electric model, a natural gas version, a five door, possibly a Cross-Up and maybe even a Buggy.

Skoda, the Czech subsidiary of VW, is launching in June this year the Citigo which is technically the same car as the Up with some design modifications but cheaper. The Spanish subsidiary Seat is putting the Mii on the market in May.

Joining the fray in the segment is the third generation Fiat Panda. It keeps its basic box-shaped design but is longer at 3.65 metres. Its engines are more economical compared to the predecessor model. The two-cylinder engine with TwinAir-Technology and turbo has an output of 63 kW/85 hp. Combined with the automatic transmission, consumption is at 4.1 litres per 100 kilometres.

The new Fiat Panda is expected to sell at prices similar to the old model. 'We are starting in all the important markets with a price of under 10,000 euros,' says the company's sales chief Olivier Francois. The Italian carmaker has also confirmed that a Panda four-wheel drive is in the planning.

Meanwhile, the other major car makers are brushing up their existing models. The cooperation partners Citroen, Peugeot and Toyota are giving the C1, 107 and Aygo a slight makeover. Smart has made some design modifications to the Fortwo and is launching an electric version this year. Toyota has just launched the new Yaris in Europe which will soon also be available as a hybrid. Renault has also given the Twingo a new look.

In another development, Opel is planning a small car below the Corsa, according to CEO Karl-Friedrich Stracke. Running under the project code Junior, it will probably be seen at the Paris Motor Show in October.

Fiat's CEO Sergio Marchionee has vowed that the company will defend its leading market position in the small car segment. But according to the experts at Jato Dynamics the VW Up family with its Skoda and Seat sister models is likely to substantially mix up the market.

The segment has been dominated by cars such as the Fiat Panda, Fiat 500, Renault Twingo, Smart Fortwo, Ford Ka, Citroen C1, Toyota Aygo, Peugeot 107, Hyundai i10 and Kia Picanto.