GENEVA -- As European demand slowly recovers, Toyota Motor, Renault and other carmakers are taking the wraps off new models at the Geneva Motor Show, which opened here Tuesday.

Toyota's new Aygo is designed to appeal to young drivers.

Toyota is pinning its European hopes on a new Aygo compact car. The vehicle's 1-liter engine is the lightest in its class and offers 5% better fuel economy than earlier models. Featuring a bold X pattern on the hood and a broad range of colors, it is designed to appeal to young drivers, a group that has been noticeably absent from the European car market lately.

In the 18 leading European countries, new-car sales were up year-over-year in the five months through January.

Japan's six major automakers had a 13.6% share of the market in 2007, prior to the Lehman shock. Since then, their share has steadily declined, but the weaker yen against the euro helped produce a 0.3-point increase from 2012 to 11.8% last year.

Renault has updated its Twingo compact, which shares a common chassis with vehicles from Daimler's Smart division. The Twingo will be available with a 900cc turbocharged engine or a regular 1-liter engine. The engine is housed in the vehicle's rear to improve driving performance.

Like its French peer Renault, Peugeot Citroen Group has seen earnings lag due to the sluggish European market. To hold down development costs, it collaborates with Toyota in vehicle design.

For European carmakers, compacts hold the key to cultivating emerging markets. Eco-friendly technologies honed under Europe's tough environmental regulations are another strong point.