Figures just published by Strategy Analytics show that the surge in small car demand during 2009 has had a noticeable impact on the demand for automotive electronics. Government incentive programs around the world have fuelled a one-off boom in the sales of smaller, lower-cost vehicles, as the incentives on offer have typically been for a fixed amount, regardless of purchase price.  A €2000 discount is thus far more attractive on a €10,000 car than a €50,000 one. The result has been an interruption in the otherwise fairly smooth rise in the value of electronic control units (ECUs) fitted to vehicles, with the 2009 value essentially unchanged at just over $650. The incentive effect is expected to reverse next year, however.  With demand for small cars at such a high level in 2009, 2010 is likely to see sale of these vehicles fall back.  Coupled with the growing electrification of the powertrain and the increased sophistication of vehicles produced in fast-growing regions such as India and China, the average value of ECUs fitted to global light vehicles is expected to start growing again in 2010. While some effect on profits will be felt by car makers (there is typically a lower margin on smaller cars) it's the electronic tier ones and semiconductor suppliers that are feeling the full impact of the temporary slow down in electronics demand. Details of the full data table can be found here.