In A and D, it is unclear whether their serves to refer to manufacturers or to small cars.
Eliminate A and D.
Forms of they (they, them, their) cannot serve to compare TWO DIFFERENT SETS OF X.
Incorrect: This year's cellphones are better than THEY were last year.
Here, the usage of they implies that the SAME set of cellphones is being discussed in each instance.
Not so.
The intention is to compare ONE set of cellphones (this year's cellphones) to ANOTHER set of cellphones (last year's cellphones).
...
Eliminate A and D.
Forms of they (they, them, their) cannot serve to compare TWO DIFFERENT SETS OF X.
Incorrect: This year's cellphones are better than THEY were last year.
Here, the usage of they implies that the SAME set of cellphones is being discussed in each instance.
Not so.
The intention is to compare ONE set of cellphones (this year's cellphones) to ANOTHER set of cellphones (last year's cellphones).
...



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