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Only one physics engine is used, it uses the physical attributes of the car to do it's thing. I doubt the physical attributes of each car will take up 5mb
I would guess physical attributes account for only a few KB as they are just stats or variables to be passed to the physics engine.
Also let's not forget a lot of cars will have recycled info which might lead to space savings (ie multiple verisons of skyline may share a lot of assets).
The whole "tracks" vs "layouts" issue comes into play when figuring out how much space tracks will take. While tracks are generally large items, remember they are often made up of lots of repeated textures and things not near where cars will go are probably going to be fairly low res textures and models...