On sale ... there is already a three-month waiting list on certain models of the Polo GTI. Source: Supplied

Sales of pint-sized city cars are up by 15 per cent in the first three months of this year — the same growth rate as SUVs — as buyers embrace new levels of performance, luxury and safety in a compact hatch.

Cheap domestic flights are indirectly a factor in our shift into smaller vehicles — because most people fly interstate these days rather than drive, says industry analyst Richard Johns, of Australian Automotive Intelligence.

Go smaller ... sales of city cars are up by 15 per cent. Source: Supplied

“People don’t need large cars like they once did,” said Mr Johns. “Very few people drive between our major capital cities now that cheap flights have become more widely available.”

The move to smaller cars has also accelerated as the fringes of our capital cities become more congested and it becomes harder to find a parking spot.

“Once upon a time one family car had to meet all our needs,” said Mr Johns. “Now Australians are buying personal cars that better suit their individual needs.”

With advances in technology, buyers also don’t need to compromise on luxury, safety or performance.

Downsizing ... Australians are now buying cars that better suit their individual needs. Source: DailyTelegraph

The latest crop of city-sized hatchbacks — or “Light Cars” as the industry defines them, as they are slightly smaller than Toyota Corolla-like vehicles — includes models that would have once shamed a Holden V8 road car tuned by racing legend Peter Brock.

Indeed, with 141kW of power from its turbocharged engine, the latest generation Volkswagen Polo GTI hot hatch has more grunt than the last series of road cars that Peter Brock put his signature on (137kW from a 5.0-litre V8) in 1987.

At $30,000, the new Polo GTI might be twice the price of a regular version of the Polo, but Australians can’t enough of them.

Three hot hatches ... the Citroen DS3, Ford Fiesta ST and Volkswagen Polo GTI. Source: DailyTelegraph

There is already a three-month waiting list on certain models of the Polo GTI even though it only went on sale last week. Perhaps part of the appeal is that it can reach the 100km/h speed limit in 6.7 seconds — quicker than a Peter Brock Commodore.

Even Ford has joined the hot hatch brigade, with a turbocharged version of its commuter car — called the Fiesta ST — as it tries to cash-in on the shift away from V8s and into small performance cars.

“Small cars aren’t what they used to be,” said Mr Johns. “People are finding that small cars meet most of their requirements now that the know what they’re truly capable of.”

This reporter is on Twitter: @JoshuaDowling