Toyota, which controls about 40 percent market share here, 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 runaway 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 1.3l-engine car by putting the fuel tank beneath the driver's seat. It also gets 23km to a liter (54 miles a gallon).
"The Fit shows Honda's commitment to achieving mechanical superiority on a small scale while providing a large space for the driver," said Yoshio Wakao, sales manager at Honda.
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."
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