The sub compact car was a popular vehicle of the past.  Yet, in the last decade their popularity has faded out, being first replaced by the wave of SUVs, and then the fairly new crossover segment, more convenient than ever family cars, and full sized sedans that offer more value. However as current gas prices inch forward and with future prices looking uncertain more people are buying small, fuel-efficient cars. There has been a lot of activity in the segment recently. Toyota has introduced the Yaris, along with its competitors, the Hyundai Accent, Kia Rio, and Fit. And as we speak, more and more automakers are committing their time and efforts in the small car segment.

Having a car in the sub-compact market makes sense for a variety of reasons. It targets young, first time buyers, and gets them introduced to the brand. If their experience is good they'll stick with the brand as they grow up and move to a larger vehicle. Toyota, actually got their start in the sub-compact car market. Small cars also provide a safety net during economic downturns. If gas prices rise unexpectedly, those with small fuel efficient cars can breathe a little easier.  

Another reason the small car is coming back is that the subcompact cars of 2010 are not the econo cars of the past. In fact, they offer respectable performance. The Toyota Yaris has 106 horsepower which may not sound like much, but tipping the scales at only 2315 lbs, it has a power-to-weight ratio close to that of the 220 horsepower Hummer H3. And these cars can carry just about anything. With the rear seats up these vehicles can fit decent amount of cargo. For most manufacturers, having competitive sub-compact cars has grown the business and created brand loyalty.