Small Cars May Stand Tall Beyond 2006

NEW YORK - October 28, 2006: Small cars are outselling SUVs this year amid fluctuating gas prices and are expected to remain popular despite some predictions that as gas prices drop bigger cars will take back lost market share.

According to The New York Times, automakers are on track to sell about 2.5 million small cars in 2006, equal to about 15 percent of the car market, or 1.5 percent more than 2005 sales.

By comparison, only about 2.3 million SUVs are expected to be sold this year, accounting for about 14 percent of the market. When gas prices hit the $3/gallon mark twice during the past year, a new flock of small cars such as the Nissan Versa, Toyota Yaris, and Honda Fit earned immediate popularity.

Both industry executives and analysts expect small car sales to grow. "There is a sustained interest in small cars in a way that there has not been since the early 1970's," said Karl Brauer, editor in chief of Edmunds.com.