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.

In France they were made and sold as Rosengarts, and in the United States they were built by the American Austin Car Company.

Many Austin 7s were rebuilt as "specials" after the Second World War,[3][4][5] including the first race car built by Bruce McLaren, and the first Lotus, the Mark I.

Companies such as Speedex in Luton thrived in the late 1950s by producing race-proven bodies and engine parts for the Seven chassis.

His design concept marked a departure from his company's conservative motoring past and Austin received considerable opposition from his board of directors and creditors.

[citation needed] The design was completed in 1922 and three prototypes were constructed in a special area of the Longbridge factory, and announced to the public in July 1922.

The engine required was thus also modest – the small 747 cc sidevalve with an actual 10 hp output gave adequate performance.

The 3-speed and reverse gearbox was bolted to the back of the engine and had a variety of ratios depending on the application: touring, sports, racing and trials.

A short torque tube ran forward from the differential housing to a bearing and bracket on the rear axle cross member.

Herbert Austin's son-in-law, Arthur Waite, soon began to achieve remarkable sporting successes beginning at Brooklands in March 1923 and the next month at Monza.

Waite and Lou Kings (chief tester) then experienced a run of failure brought about by inadequate engine lubrication for racing conditions.

Meanwhile, Gordon England, flushed with success from establishing six new class records at Brooklands, had built a special lightweight 2-seater body weighing just 20 lb (9.1 kg) and entered it in the 1100 cc class for the Junior Car Club 200 mile race at Brooklands in October 1923.

His fabric saloon body based on aircraft principles was said to be the smallest closed car in the world.

[10] In 1927, William Lyons, co-founder of the Swallow Sidecar Company (after WW II Jaguar Cars), saw commercial potential in producing a re-bodied Austin 7.

[11][12] The height of saloon car fashion of the day was to have the back of the body fully rounded, this was called "dome" shaped.

Austin 7s were also manufactured by Nissan (Datsun) but reports differ as to whether these were built under licence or were unlicensed copies.

[citation needed] In addition, rolling chassis were exported to Australia to have locally made bodies attached.

[15] After some initial success the Great Depression set in, and sales fell off to the point that production was suspended.

The chassis concession acted as a financial incentive for local coach-builders to import factory built rolling chassis, and fit uniquely Australian designed and built bodies, leading to the establishment of an Australian motor vehicle bodybuilding industry in the early 1920s.