Australian car buyers are following the lead of the world - making sure that their ride exudes not only sleek and sexiness but also saves more fuel.

This now explains the increasing popularity of compact cars that Japanese carmakers have popularised first in the United States and now in the Asia Pacific region, experts said.

In Australia, the bestselling vehicle for 2011, according to the latest VFACTS data released on Wednesday, was Mazda 3, which experts and consumers alike praised for reliability without sacrificing the look-factor.

By selling more number of units, roughly a thousand more according to The Advertiser, Mazda 3 is now Australia's number one vehicle, dislodging the country's long-time favourite, the Holden Commodore.

For 15 years, media reports said, Commodore held sway among Australian families, whose taste and priorities now vary significantly as they give more weight on fuel efficiency and sticker price.

On that respect, small cars and medium sizes ruled the past year, The Advertiser reported, with Toyota and Mazda tussling closely but with the former achieving better overall results on the account of combined sales for the Corolla and Camry.

Right now, Mazda is basking on its new found glory, at least in Australia, which Mazda Australia managing director Doug Dickson attributed to a new global trend - the re-emergence of small cars and the decline of the big-sized sedans.

Dickson said that Mazda has become the major beneficiary of the shift, with the Mazda 3 attracting not only second looks but also actual buys.

"You have to look at the industry dynamic in terms of other factors. Right now, if someone needs more interior space they don't need to go to a large car," the Mazda executive added.

On its part, Holden earlier admitted in December that the Commodore is long-slated to relinquish its post but the company is optimistic that the new Holden Cruze will continue to carry the torch for the Australian firm.

Holden, company officials said, is now more focused on pushing the Cruze to record more profitability instead of preserving its statistical top position.

"We've said all along that it's going to be a tough fight ... but our focus is on profitability," Holden spokeswoman Shayna Welsh told the Herald Sun.