The Austin 7 is an economy car that was produced from 1923 until 1939 in the United Kingdom by Austin. It was nicknamed the "Baby Austin" and was at that time one of the most popular cars produced for the British market and sold well abroad. Its effect on the British market was similar to that of the Model T Ford in the US, replacing most other British economy cars and cyclecars of the early 1920s. It was also licensed and copied by companies all over the world. The first BMW car, the BMW Dixi, was a licensed Austin 7. In France they were made and sold as Rosengarts, and in the United States they were built by the American Austin Car Company. In Japan, Nissan also used the 7 design as the basis for their first cars, although not under licence. This eventually led to a 1952 agreement for Nissan to build and sell Austins in Japan under the Austin name.

Economy car is a term mostly used in the United States for cars designed for low-cost purchase and operation. Typical economy cars are small, lightweight, and inexpensive to both produce and purchase. Stringent design constraints generally force economy car manufacturers to be inventive. Many innovations in automobile design were originally developed for economy cars, such as the Ford Model T and the Austin Mini.