In OTL there were a number of Soviet / Eastern Bloc prototype small cars that never reached production as well as a few theoretical small car analogues to the Mini that never came to be, what if the following instead managed to reach production?
Lada (or VAZ) E1101 prototype aka Cheburashka (an early-70s project featuring a 50 hp 900cc engine with 4-speed gearbox that was capable of being enlarged to 55+ hp 1100cc as well as a length of 3.12m / 123-inches)
https://jalopnik.com/heres-the-cutest-soviet-car-youve-never-heard-of-1820213958
Tatra T604 LIDO (featuring a 22 hp 750cc or more specifically 736cc Flat-4 with 4-speed gearbox and a length of 145-inches)
https://jalopnik.com/a-car-you-never-heard-of-the-compact-tatra-that-wasnt-1746271166
Skoda Mini (featuring a 21 hp two-stroke 2-cylinder 350cc / 344cc engine from the Jawa 350, weight of 400kg and a length of 117-inches)
https://www.flickr.com/photos/skitmeister/9365004632
Polski Fiat 126p NP (essentially a Polish built Fiat 126 converted to front-wheel drive with some prototypes even featuring a hatchback bodystyle)
https://upload.wikimedia.org/wikipedia/commons/d/d3/Polski_Fiat_126p_NP_-_BOSMAL.jpg
Polski Fiat / FSM Beskid (carried over the 594-704cc 2-cylinder engines from the Fiat 126 / Cinquecento, with another prototype using a 1116cc Fiat SOHC unit as opposed to the Fiat 100 Series engine. It is claimed that Renault largely appropriated the design for the original Renault Twingo.)
https://en.wikipedia.org/wiki/FSM_Beskid
Trabant P603 / Trabant P610 / Trabant P601 WE II (can be best described as a series of modern looking hatchback prototypes to replace the original Trabant, with the latter two and possibly even the former featuring 1100cc+ Skoda sourced four-stroke engines to replace the old two-stroke units. Part of a series of still-born Eastern Bloc plans for Trabant, Wartburg and Skoda to cooperate with each other. Some implausibly allege East Germany sold the designs of the Trabant P603 to Volkswagen and thus it, not DKW/NSU had a role in the creation of the original Volkswagen Golf.)
http://www.paul-wouters.nl/trabantschema.htm (Dutch link)
Fictional yet plausible ATL small cars from Eastern Bloc:
Zastava 850 (aka SEAT 133 to replace the earlier Fiat 600-based Zastava 750)
https://en.wikipedia.org/wiki/SEAT_133
Zastava / Yugo 900 (aka Autobianchi A112 - slotting below the Yugo Koral)
https://en.wikipedia.org/wiki/Autobianchi_A112
Dacia Lăstun (alternate Romanian-built Renault R2 as opposed to OTL car)
https://ranwhenparked.net/2012/08/28/a-look-at-the-renault-2-the-mini-fighter-that-never-was/
Lada (or VAZ) E1101 prototype aka Cheburashka (an early-70s project featuring a 50 hp 900cc engine with 4-speed gearbox that was capable of being enlarged to 55+ hp 1100cc as well as a length of 3.12m / 123-inches)
https://jalopnik.com/heres-the-cutest-soviet-car-youve-never-heard-of-1820213958
Tatra T604 LIDO (featuring a 22 hp 750cc or more specifically 736cc Flat-4 with 4-speed gearbox and a length of 145-inches)
https://jalopnik.com/a-car-you-never-heard-of-the-compact-tatra-that-wasnt-1746271166
Skoda Mini (featuring a 21 hp two-stroke 2-cylinder 350cc / 344cc engine from the Jawa 350, weight of 400kg and a length of 117-inches)
https://www.flickr.com/photos/skitmeister/9365004632
Polski Fiat 126p NP (essentially a Polish built Fiat 126 converted to front-wheel drive with some prototypes even featuring a hatchback bodystyle)
https://upload.wikimedia.org/wikipedia/commons/d/d3/Polski_Fiat_126p_NP_-_BOSMAL.jpg
Polski Fiat / FSM Beskid (carried over the 594-704cc 2-cylinder engines from the Fiat 126 / Cinquecento, with another prototype using a 1116cc Fiat SOHC unit as opposed to the Fiat 100 Series engine. It is claimed that Renault largely appropriated the design for the original Renault Twingo.)
https://en.wikipedia.org/wiki/FSM_Beskid
Trabant P603 / Trabant P610 / Trabant P601 WE II (can be best described as a series of modern looking hatchback prototypes to replace the original Trabant, with the latter two and possibly even the former featuring 1100cc+ Skoda sourced four-stroke engines to replace the old two-stroke units. Part of a series of still-born Eastern Bloc plans for Trabant, Wartburg and Skoda to cooperate with each other. Some implausibly allege East Germany sold the designs of the Trabant P603 to Volkswagen and thus it, not DKW/NSU had a role in the creation of the original Volkswagen Golf.)
http://www.paul-wouters.nl/trabantschema.htm (Dutch link)
Fictional yet plausible ATL small cars from Eastern Bloc:
Zastava 850 (aka SEAT 133 to replace the earlier Fiat 600-based Zastava 750)
https://en.wikipedia.org/wiki/SEAT_133
Zastava / Yugo 900 (aka Autobianchi A112 - slotting below the Yugo Koral)
https://en.wikipedia.org/wiki/Autobianchi_A112
Dacia Lăstun (alternate Romanian-built Renault R2 as opposed to OTL car)
https://ranwhenparked.net/2012/08/28/a-look-at-the-renault-2-the-mini-fighter-that-never-was/
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