TOKYO — At the Tokyo Motor Show opening this weekend, Japan's automakers will be showing their latest contenders in one of the most competitive sectors in the global market — small cars that are efficient, stylish and roomy.
While many of these subcompacts won't be sold in the United States, where bigger cars dominate, they hold the secret to why Japanese carmakers repeatedly beat American rivals in turning out fine-tuned, best-selling cars such as the Toyota Camry and Honda Accord.
Winning the small car battle at home is critical for Japanese automakers, who are concerned about sales in the United States after the Sept. 11 terrorist attacks.
Japan is in the middle of a deep economic slowdown that's expected to force more Japanese to turn to cheaper, small cars that start at the equivalent of $8,300. The small cars also stand a good chance in Europe where the Japanese are still fledgling players but hoping to do better.
The Japanese say the finesse of packaging sophisticated engineering and safety features in a tiny car gives them a definitive edge in designing the larger small cars for overseas markets.
"If you can do the job with a small car, it's far easier to do it with a bigger car," said Satoru Tai, product chief designer of Tokyo-based Nissan Motor Co.
Nissan is trying to challenge the domination of Toyota and Honda in the small car market with the March, the first car totally produced under Nissan's alliance with French automaker Renault SA. Since taking a 36.8 percent stake in the Japanese automaker in 1999, Renault has helped return the money-losing Nissan to profitability.
The March, sold as the Micra in Europe, shares the same model base and other auto parts with the Renault Clio — a common way carmakers forming alliances are cutting costs.
In wooing drivers, Nissan is pushing a his-and-hers version of the small car. March targets young women with its gentler, rounder look and roomy glove compartments. Another Nissan model, the angular, sportier-looking Cube, is the counterpart that targets young men.
The company knows it has a lot of work to do in the small car market.
"Our brand is weak against Toyota and Honda," Nissan vice president Patrick Pelata said. Weaker still are the American brands, which have developed a reputation as clunkers and struggled for years to appeal to Japanese buyers. American small cars like the Chrysler Neon and Ford's Ka and Focus have more or less bombed in Japan. Cars from General Motors Corp. and Ford Motor Co. and the Chrysler cars from DaimlerChrysler still make up only about 1 percent of Japan's auto market.
Ford recently acknowledged that sales in Japan will total about 12,000 vehicles this year and fall short of its target of 15,000.
"Ford is starting to realize that Japanese drivers are very picky about details like the paint job and won't stand for the tiniest flaw," said Eiji Iwakuni, president of Ford Japan.
Toyota, which controls about 40 percent of the market in Japan, has scored enormous success with its Vitz subcompact. Rolling into showrooms in 1999, Vitz sales are still going strong at 100,000 for this year alone. Toyota has also sold 240,000 Corollas since its remodeling last August.
Honda has a hit with the new Fit subcompact, selling nearly 51,000 in just four months.
The Fit, which will be sold as the Jazz in Europe starting next year, manages to be roomy for a 1.3 liter-engine car by putting the fuel tank beneath the driver's seat. It also gets 54 miles to the gallon.
How other carmakers will be able to challenge Toyota and Honda remains to be seen, says Seiji Sugiura, auto analyst with Nomura Securities Co. in Tokyo.
"The Fit already took care of a lot of the buyers in that segment. The Fit's success was that big," he said. "All the makers know this is the growth sector."