Technically speaking, SUVs, station wagons and minivans can also be classified as hatchbacks. However, the term hatchback is typically used in reference to small economy cars.
Small cars often incorporate a hatchback to make the best use of available space. Hatchbacks are often truncated, with the hatch nearly vertical, to reduce the car's footprint. This adds to the car's manuveurability, an important consideration in countries where small streets and traffic congestion are factors. Hatchbacks frequently include fold-down rear seats, which enable a substantial portion of the interior space to be used as a cargo area.
Many sports cars are also designed using a variation of hatchback design, sometimes called a liftback. Here, the hatchback is angled down from the front-passenger's roof, over a small rear seat, and smoothly integrated into the tail of the car. This often improves aerodynamic performance, resulting in a reduced drag coefficient.