The trend in the automobile industry as of late has been toward smaller cars, with crossovers replacing the full-size SUV and hatchbacks like the Ford Fiesta selling like hotcakes. Now, two luxury manufacturers are getting in on the game by announcing plans to introduce several vehicles that will be smaller than any of their current offerings.

BMW is planning to introduce a new family of subcompacts that will feature front-wheel drive. BMW director of sales and marketing Ian Robertson told the Automotive News that there will be several variants, but all will feature a four-cylinder engine. Early plans indicate that the new class will be dubbed "UKL."

"It will be a relatively big segment because we have several body styles," he told the news source.

Meanwhile, BMW's chief competitor Mercedes-Benz is also looking to expand into that market. The company will introduce a number of new designs based on its B-Class platform, including a coupe and compact SUV. However, the company's new European hatchback, based on its smaller A-Class platform, will not reach U.S. shores.

As smaller cars begin to dominate the showrooms, fans of larger vehicles can likely find deals on the used car market.