A-Segment
India's Tata Nano may some day be sold in the USA.
Mini-compact cars or A-segment models, are the smallest cars on our roads. Available in Europe, Asia and in many emerging markets, these vehicles are also known as “city cars” and usually seat two to four passengers and are often powered by a three cylinder engine.
Smart ForTwo
In North America, only one model fits the “city car” bill and that is the Smart ForTwo, a two passenger microcar introduced to the U.S. market in January 2008. The Tata Nano is another such car, introduced in India in 2008 and expected one day to be made available in Europe and abroad. The Nano seats four passengers and has the distinction of being the cheapest priced car in the world, selling for under $2,500 in India.
Other models categorized as “city cars” include the Fiat Panda, Hyundai i10 and the Toyota Aygo. In Japan, such models are known as “kei cars” which includes some models which would probably be categorized as subcompacts or B-segment models if they were sold in North America or Europe.
Market Demand
Although drivers are increasingly weighing their new car choices in the face of higher gas prices, demand for A-segment cars remains poor. Sales of the Smart Fortwo, priced from just under $12,000 surged in 2008, but fell off when gas prices tumbled later that year. Higher gas prices and generous incentives by parent Daimler AG aren’t helping to move the Smart which has the disadvantage of seating just two people and having token storage space.
Another concern about mini cars is safety. Though traction control, stability control, airbags, side curtain airbags and rigid body structures can help, there is no getting around it that when a minicar is t-boned, the occupants do not fare well at all. The ForTwo boasts a rigid safety cage and may be best suited to handle a crash, but its occupants will still feel the brunt of whatever accident befalls them. Around most cities this issue doesn’t loom so large, unless you have the misfortune of being hit by a New York City cabbie.
One area where city cars may gain some traction is in car rentals, specifically in car sharing services such as Zipcar. Strategically placed around the city or near college campuses, these services allow drivers to rent a car for a few hours or a few days, at a minimal cost. A-segment cars are a good match for these services unless, of course, you’ll be hauling a lot of groceries or need to drive very far.
See Also — Tata Nano Launches, But At What Cost?
Sources: Tata Motors and Smart USA
