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We are the small-car country, the entry-level nation, the land of frugal, affordable transportation.

Consider: DesRosiers Automotive Consultants data show that the entry-level market is by far the largest segment in Canada. How big? In 2008, 51.5 per cent of all light vehicles sold in Canada were entry-level — i.e. small — cars.

What a difference a decade or so makes. In 1996, entry-level vehicles accounted for less than a third of all Canadian sales, 30.4 per cent.

Some of the growth has come from the increased popularity of car-based compact SUVs such as the Toyota RAV4, Honda CR-V, Hyundai Tucson and Ford Escape. They now account for 13.3 per cent of the market; it was less than 2 per cent a decade ago.

That growth makes sense. Many Canadians have simply traded in the traditional family station wagon for a taller model with decent fuel economy and car-like handling. As the station wagon market has declined, compact SUVs have taken their place.

But we Canadians have also made a big move to small so-called B-sized cars. Think subcompacts.

DesRosiers reports that their market share doubled to 8.7 per cent in 2008. Unstable fuel prices, tighter budgets and concerns about the environment all had an impact on buyer behaviour.

Dennis DesRosiers, president of the consulting company, calls this growth the "invasion of the Bs," in that subcompact sales were up 19.6 per cent last year to 141,538. Canadians haven't bought that many subcompacts since 1991.

Some credit for the move to small has to go to auto makers. They have grown more interested in the segment, giving buyers better choices.

The 2009 Honda Fit, for instance, was just named Best New Design for 2009 even though it was competing against stylish models such as the Jaguar XF luxury sedan and the Mazda6 mid-size sedan.

Today's subcompact — be it the Fit, Yaris, Chevrolet Aveo, the Nissan Versa, Hyundai Accent, Kia Rio or Suzuki Swift — is a completely functional, reliable, fuel-efficient runabout. Add in the Smart fortwo and the segment also includes a pure design statement.

Then we have compact cars, also included in the entry-level, small-car mix. This is where Canadians really shop.

Compact cars account for 26.4 per cent of the market and Canada's top-10 list of best-selling cars is dominated by them.

The No. 1 selling car in Canada is a compact, the Honda Civic, and so are No. 2 (Toyota Corolla), No. 3 (Mazda3), No. 5 (Chevy Cobalt), No. 7 (Pontiac G5), No. 8 (Ford Focus) and No. 9 (Toyota Matrix).

Look at that list. The Civic rewards owners with an excellent resale value, bullet-proof reliability, bold looks and handy performance.

The Corolla, completely reinvented for 2009, is a pretty sophisticated small car, also with a sterling reputation for reliability and outstanding resale.

The Mazda3, a new version of which has just been launched, is sporty and fun to drive, not to mention one of the slicker designs in the entire car market. Meanwhile, the Cobalt and G5 have proven themselves and are available through Canada's largest dealer network.

The Focus? It can be bought with a fancy new Microsoft gadget call Sync, which listens and responds to your voice commands. And the Matrix? It's a hatchback version of the Corolla, with all the latter's strengths and the added benefit of a hatch at the rear.

Together, the entry-level class suggests auto makers "get it," that they understand buyers want more for less. The auto makers who are responding quickest and best are being rewarded with sales, too.

Look the numbers. It's no secret that General Motors, Ford and Chrysler spent the last decade, perhaps the last two decades, focused on larger vehicles, pickups, SUVs, bigger cars and the like. And they have been punished in the entry market accordingly by losing "about half their market position over the last two decades," says DesRosiers.

Since 1990: GM is down to 16.7 per cent from 30.4 per cent; Ford is down to 9.6 per cent from 16.7 per cent; and Chrysler has gone to 7.7 per cent from 16.6 per cent.

Who's winning? The Japanese. Their entry-level share has jumped to 51.4 per cent from 28.7 per cent in 1990. Meanwhile, the South Koreans have grabbed 10.1 per cent, quadrupling their share from 2.5 per cent.

Oddly, the Europeans, who do know how to make small, affordable cars, have not grown their share; it's been constant at around 4.5 per cent.

Now compared to the Americans, we absolutely embrace entry-level vehicles. Last year in the United States, entry sales grabbed 32.6 per cent of the market, up from 28.8 per cent in 2007. The overall yearly spike can largely be attributed to a surge in small-car sales late last spring and into the summer which has since subsided as the price of gas has gone down from more than $4 (U.S.) a gallon to about $2 today.

In Canada, where higher fuel taxes have pushed buyers into small and affordable vehicles, entry-level rides account for more than 50 per cent of the market.

"This highlights that Canada is one of the most responsible vehicle-buying publics in the world," says DesRosiers.

But the United States is definitely catching on, says Jim Farley, Ford group vice-president for marketing and communications.

Ford, he says, has made a big commitment to adding new and stylish models such as the current Ford Fiesta subcompact to the Ford lineup by 2010. A new Focus compact is also coming, and it's the European one that is fun to drive and pleasant to look at.

Farley says Ford will no longer make the mistake of not having fuel-efficient, fun-to-drive and affordable cars in its lineup.

"Small cars are here, the move is permanent, though there will be spikes and troughs in the market," he says. "We're convinced that over the long term, the market [in the United States] is changing."

That, of course, is putting new pressure on auto makers to spice up their small cars. Some versions will remain at the lower end of the pricing ladder, but a phenomenon not really seen with any significance in North America before — though commonplace in Europe — is the small premium car.

That is, Farley thinks North Americans are in the early stages of a move that will see consumers no longer assume that a compact or a subcompact is by definition an entry-level car.

Auto makers like Ford, and really all the others, are facing the need to squeeze more profits out of a segment of the market once considered an unprofitable ghetto. Small cars with big profit margins?

"It comes down to product execution," says Farley. "You can't just put leather and a sunroof in an EX or an XLE version and expect people to get excited. It takes more than that."

More, as in more appealing styling, better handling, scrumptious interiors and lots of technology. Ford will test this theory by bringing six new small vehicles from Europe to North America, including the Fiesta, the new Focus and even an electric panel van called the Transit Connect.

The promise is for better small cars than ever before. And that means a new vision of what defines an entry level car.

Canadians will be particularly interested.

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TOP 10 ENTRY CARS IN CANADA

1. Honda Civic

2008 sales: 72,463

Base price: $16,990

The Honda Civic was redesigned for 2006. The line includes both sedan and coupe, and there is also a hybrid version. The conventional Civic sedan has a 140-horsepower engine and comes with either a five-speed manual transmission or five-speed automatic.

This car is agile, fun to drive, comfortable inside. Overall, this car is nicely finished, relatively powerful and refined. In front crash tests by the U.S. Government, the driver and passenger sides scored a best-possible five-star rating.

2. Toyota Corolla

2008 sales: 57,736

Base price: $14,835

Since it went on sale in Japan in 1966, the Corolla has become the planet's best-selling line of passenger cars. Last year, Toyota introduced an all-new Corolla, the 10th-generation version. The base car, the entry-level model, has a 1.8-litre four-cylinder (132 hp) with a five-speed manual or four-speed automatic.

The Civic beats the Corolla by a bit in head room, but the Corolla not only has more rear leg room, but the flat floor is more comfortable for passengers — and the Corolla's trunk is much larger, too. The road manners are pleasant enough. In crash tests, the Corolla received four of five possible stars in front crash protection for both driver and passenger.

3. Mazda3

2008 Sales: 50,317

Base price (sedan): $15,995

Mazda has updated the Mazda3 as a 2010 model with evolutionary improvements to the chassis and powertrains. The real improvements are in a fairly aggressive styling remake and carefully considered engineering upgrades. Horsepower is up substantially on the larger engine choice (167 hp), but unchanged on the entry-level four (148 hp).

The basic body structure is a little lighter and stronger, and fuel economy is improved, too. But the cabin and trunk are virtually the same size in the 2010 model as in the 2009, 2008, 2007, 2006, 2005 and 2004. This is a great-looking car and it's entertaining to drive. The interior is very stylish. The 2009 model earned four star ratings for driver/passenger safety in frontal crash tests. The 2010 has yet to be rated.

4. Toyota Yaris

2008 sales: 40,602

Base price (four-door sedan): $13,999

Toyota last gave the Yaris — which replaced the Echo — a big makeover for the 2007 model year. Toyota sells not only a sedan version, but also a four-door hatchback and a two-door hatch. All three share a 106-horsepower four-cylinder engine. It's fuel efficient and adequately powerful.

This little runabout is an acceptable city car, but for long highway stretches the cabin is noisy and the seats are thinly padded. Solid reliability, though. The U.S. Government gives it a good but not great four-star crash test rating right across the board.

5. Chevrolet Cobalt

2008 sales: 33,754

Base price (sedan): $15,325

Chevrolet sells two body styles of the Cobalt, sedan and coupe. The last major makeover for this compact came in 2005, when it replaced the Cavalier. The Cobalt is a respectable grocery-getter with a peppy 155-hp four-cylinder engine. The ride is acceptable for its class, visibility is pretty good and the cabin is comfortable enough. Overall, the design is bland but not offensive.

The Cobalt comes with an excellent powertrain warranty (five years/160,000 km). In front-crash tests, the driver's side earned four stars, the passenger side five.

6. Hyundai Accent

2008 sales: 29,751

Base price (sedan): $14,295

Hyundai makes sedan and hatchback versions of the little Accent and both are powered by a 110-hp four-banger. The Accent does its chores nicely, with a pleasant interior and an airy cabin. Hyundai's small cars in the past presented reliability worries to buyers, but not any longer.

The Accent is highly related for quality and durability. Sure, the ride is a bit noisy and the handling is basic runabout, but that's not unusual among cars in this price class. In frontal impacts, the Accent earned a five-star rating for driver and passenger.

7. Pontiac G5

2008 sales: 26,436

Base price (sedan): $15,745

The G5 is Pontiac's version of the Cobalt. The two cars differ slightly in styling and packaging, but there are no fundamental differences between the two models — including crash test scores.

8. Ford Focus

2008 sales: 23,654

Base price (sedan): $17,099

The Ford Focus, which was reworked for 2008, is now sold in two body styles: sedan and two-door. The new design is just fine and the big trunk at the rear is managed by struts that make good use of the available space. The chassis here really dates back to 2000, yet this car remains competitively nimble — darn near the equal of the newest Civic and Toyota Corolla, and that's saying something.

The improved 2.0-litre four-cylinder engine (140 horsepower) is a perfectly good engine unless pushed super hard, at which point a rough edge sets in. The Focus has a four-star frontal crash rating for driver and passenger.

9. 2009 Toyota Matrix

2008 sales: 23,549

Base price: $15,975

The Toyota Matrix is the hatchback version of the Corolla and so the base engine is the same 1.8-litre four-cylinder (132 hp). Toyota also sells an all-wheel-drive Matrix and it gets a 2.4-litre engine (158 hp).

The Matrix has a rear hatch (versus the Corolla's trunk) but the differences do not end there. The Matrix has a bit more interior space — for people and cargo — than Corolla. The Matrix has a five-star front crash rating for driver and passenger.

10. Nissan Versa

2008 sales: 21,845

Base price (sedan): $12,498

The Nissan Versa sedan is the real bargain here, though there is a four-door hatchback that starts at a very reasonable $13,998. Power for the sedan comes from a 107-hp four-cylinder, while the hatch has a large, 122-hp four-banger.

The Versa is a big car for a subcompact. The cabin is very spacious and there is decent cargo room, too. The ride is on the noisy side when speeds get higher, but not unbearable. It's not the sexiest design, but completely functional. The Versa has four star ratings for both driver and passenger in front crash tests.