Economy car
Economy car
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Economy car

Economy car is a term mostly used in the United States for cars designed for low-cost purchase and operation. Typical economy cars are small (compact or subcompact), lightweight, and inexpensive to both produce and purchase. Stringent design constraints generally force economy car manufacturers to be inventive. Many innovations in automobile design were originally developed for economy cars, such as the Ford Model T and the Austin Mini.

The precise definition of what constitutes an economy car has varied with time and place, based on the conditions prevailing at the time, such as fuel prices, disposable income of buyers, and cultural mores. It typically refers to a car that is designed to be small and lightweight to offer low-cost operation. In any given decade globally, there has generally been some rough consensus on what constituted the minimum necessary requirements for a highway-worthy car, constituting the most economical car possible. However, whether that consensus could be a commercial success in any given country depended on local culture. Thus in any given decade, every country has had a rough national consensus on what constituted the minimum necessary requirements for the least expensive car that wasn't undesirable, that is, that had some commercially attractive amount of market demand, making it a mainstream economy car. In many countries at various times, mainstream economy and maximum economy have been one and the same.

From its inception into the 1920s, the Ford Model T fulfilled both of these roles simultaneously in the U.S. and in many markets around the world. In Europe and Japan in the 1920s and 1930s, this was achieved by the much smaller Austin 7 and its competitors and derivatives. From the 1940s and into the 1960s, the Volkswagen Beetle played both roles throughout much of the world, particularly in Germany and Latin America – due to high fuel consumption, British, French, Italian, and Japanese models, all with better fuel economy, were able to capture the maximum-economy position in their home countries. By the 1970s the hatchback had become the standard body type for new economy car models.

From 1960-1994 the Soviet Union sold the economy car Zaporozhets (and in the 80s, its successors, ZAZ-1102, and VAZ-1111) on the world market. In the mid-1980s, the Yugoslavian Zastava Koral (Yugo), was being sold as the cheapest new car on the U.S. market. South Korea's Hyundai models also sold well in the U.S., and have gone on to be successful around the world.

Since the 1990s, the automotive industry has become extensively globalized, with all major manufacturers being multinational corporations who use globally sourced raw materials and components, with most moving assembly to the lowest labour cost countries. Today, a majority of major manufacturer offers economy cars, including at least one truly small car that may fall into subclassifications such as subcompact car, supermini, B-segment; city car; microcar; and others.

Gordon Murray, the Formula 1 and McLaren F1 designer, said when designing his new Murray T.25 city car: "I would say that building a car to sell for six thousand pounds and designing that for a high-volume production, where you have all the quality issues under control, is a hundred times more difficult than designing a McLaren F1, or even a racing car. It is certainly the biggest challenge I've ever had from a design point of view."

The history of the automobile after many experimental models dating back at least a hundred years, started with the first production car – the 1886 Benz Tricycle. This began a period that was later known as the Brass era which is considered to be from 1890 to 1918 in the U.S. In the UK this is split into the pre-1905 Veteran era and Edwardian era to 1918. The U.S. Veteran era is usually dated pre-1890.

In the 1890s and into the first decade of the twentieth century; the motorized vehicle was considered a replacement for the carriages of the rich, or simply a dangerous toy, that annoyed and inconvenienced the general public. For example, the 1908 children's book The Wind in the Willows, pokes fun at early privileged motorists. The automotive industry in France were the world leaders during this period – the Locomotives Act 1865 (the 'Red Flag Act') had obstructed automotive development in the UK until it was mostly repealed by the Locomotives on Highways Act 1896. The high wheeler was an early car body style virtually unique to the United States. It was typified by large-diameter slender wheels, frequently with solid tires, to provide ample ground clearance on the primitive roads in much of the country at the turn of the 20th century. For the same reason, it usually had a wider track than normal automobiles.

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