There has been an increasing trend towards smaller cars in recent years - the recession, rising petrol prices and the shunning of excess have made of sure of that. The difficulty for car manufacturers is that there just isn't any money in small cars - aside from raw materials the costs are practically the same, but the a city car is never going to command the same price as an executive saloon.
Toyota is onto something with its iQ city car though - by far the most interesting and radical thing to come out of the Japanese company's factory in many years. The iQ is pretty left-field by anyone's standards not by those of a notoriously conservative manufacturer.
It has a tiny footprint on the road, but space has been maximised by shoving the engine as far forward as possible and giving the iQ an upright stance that makes it feel as spacious inside as a much bigger car.
Toyota has pioneered what it calls 3+1 seating, where the driver sits in a normal position, but the dashboard on the passenger side has been cut away in order for that seat to be much further forward and allow room for someone to sit behind. The seat behind the driver is useable for short distances, but best left for children.
From a car barely bigger than a Smart, this is impressive stuff. Three people can definitely ride in a certain amount of comfort and the cabin is trimmed with respectable materials too, giving it an upmarket feel that isn't often encountered in this segment.
The iQ drives with a maturity and stability that belies its size, and though it isn't rapid it does have a certain verve thanks to its short wheelbase and light weight.
There are two engines available, 1.0-litre and 1.3-litre petrol units. The 1.3-litre car does offer a welcome boost in power, but at the expense of higher emissions and fuel consumption. The smaller engine is certainly more in keeping with the spirit of the iQ and you don't really feel penalised for choosing it.
The iQ is a remarkably likeable car from Toyota, and the company proves there is money to be made from the downsizing trend. The price doesn't stack up when you consider the iQ on its own, but view it was a fashionable city alternative to a Mini or a Smart and you begin to see its appeal.