Citroen isn't the first to produce a versatile MPV version of a conventional supermini but it is arguably the first to do the job properly. The company's C3 Picasso is a genuine alternative to larger 5-seat mini-MPVs in the class above and many will be attracted by its younger, more bubbly image.

Citroen is the branch of the French PSA group tasked with dominating the European market for MPV people carriers and so far, it's not doing too bad a job. The family hatch-based C4 Picasso and 7-seat C4 Grand Picasso have been well received, as has the second generation version of the van-based Berlingo Multispace. The large sector 7 or 8-seater C6 continues to command a following and there are even customers for the budget-priced Xsara Picasso, a car that dates back to 2000.

What the brand hasn't had to date is an MPV based on a supermini. You'd be forgiven for not knowing that such things exist, or if you did, wondering how such a concept might be possible within the restricted dimensions of such a small package. The answer is that such cars might not be able to carry any more people than a conventional Fiesta-sized supermini but they can seat five people far more comfortably and offer them considerably greater levels of versatility. Cars like Nissan's Note and Vauxhall's Meriva have been doing pretty well in this growing sector in recent years and the segment has even broadened to include more extreme 'lifestyle' alternatives like Renault's Kangoo be bop. It's between these two types of supermini-MPV that Citroen's C3 Picasso sits.

With this kind of car, the driving experience is likely to be unremarkable but the travelling experience can often feel rather unique. So it proves with the C3 Picasso. The first thing that you'll notice behind the wheel is the exceptionally light and airy cabin, courtesy of one of the largest glazed areas in the segment with up to up to 4.52m2 of glass used around the side and the top of the car, assuming that, like most potential buyers, you opt for the panoramic glass roof. The high-set seating position gives you a commanding view of the road and the three-part panoramic windscreen with its slim pillars makes urban driving much easier courtesy of an unusually wide side vision angle of 29.5 - easily best in the segment.

"This Citroen genuinely does feel like a different concept - and one you could easily get used to."

Manoeuvrability and a tight turning circle are also a boon around town, while the car's vertical rear end makes parking easy. Citroen claim to have expended a huge effort on improving refinement, often an issue with this type of car bearing in mind all the flipping and folding mechanisms on hand ready to squeak you to distraction. We'll see. Top line safety of course is a non-negotiable for this class of car and the C3 Picasso of course obliges, with ESP stability control available and all-round protection from up to six airbags (front, side and curtain), active restraint systems, a seatbelt warning system, ABS with EBD and EBA, automatic hazard warning lights, Isofix anchor points, plus automatic locking on the rear doors and windows. We particularly like the special extra child rear-view mirror so you can keep an eye on the fights and tantrums without turning round.

It's hard to think of a better car than this one to sum up the 'small on the outside/big on the inside' philosophy that so many compact car buyers are looking for. Measuring 4.08m long, 1.73m wide and 1.62m tall, the car makes the most of every millimetre of its bulk an incorporates everything Citroen has learned over the years about MPV versatility. To increase either boot volume or rear legroom, the split-folding rear seats slide back and forth independently and can also be folded away with one easy hand movement. This function provides an entirely flat load surface which extends right up to the front seatbacks and can be further extended - to over 2.41m - by folding the back of the front passenger seat completely down.

Unrivalled in its roominess, the cabin length measures 1.66m - one of the longest in its class and a rival for a number of MPVs in the segment above. Elbow room is class-leading and knee room is also plentiful even with the rear bench moved forward and by using slim seat backs and bases on the front seats, rear passengers are afforded even more space.

Storage space is either 500 litres or 1506 litres, depending on whether or not you fold the rear seats. There's also a removable boot floor which can be positioned at two different levels, at or below the floorline. Cubbyholes and storage spots are everywhere, the glovebox gets air conditioning (if it's already fitted) to keep your chocolate and drinks cool and aircraft-style trays can also be installed in the rear with reading lights and cup holders.

You won't recognise an old-shape Citroen C3 on first acquaintance with this car, either from a glance at the exterior or a look under the bonnet, at least if you're a petrol buyer anyway. Ordinary C4 Picasso or Zafira-sized mini-MPVs sell mainly in diesel form but the lower mileages of supermini-MPV customers make the premium required for diesel harder to justify. Vital then for Citroen to be able to offer a more cutting edge selection of petrol units than the original C3 could provide.

The French engineers have obliged with two petrol units - baged 'VTi 95' and 'VTi 120' - taken from the new-generation of engines developed in partnership with BMW. These claim to combine efficient economy with responsive performance and lowered CO2 emissions - the VTi 120 already complying with future Euro 5 pollution standards. The two diesel engines - the HDi 90 and HDi 110 - are more familiar from other models in the marque's range, both featuring DPFS (Diesel Particulate Filter systems) so that you can hold your head up high with environmentalist friends.

You won't need to take out a second mortgage to run a C3 Picasso, especially if you opt for one of the HDi models, both of which should see you the right side of 50mpg on a regular basis. CO2 emissions for both are 125g/km and 130g/km respectively. Insurance groupings will be pretty much the same as any normal comparable supermini. And depreciation? Never a Citroen strongpoint, this will depend very much on how the market takes to this car. It's a pretty safe bet however, that you'll do significantly better at resale time than you would if you'd bought an ordinary C3 supermini. Even if you don't really need the C3 Picasso's extra versatility, that reason alone may be enough for seriously considering it over the standard C3.

Given that Citroen is Europe's supposed market leader in selling all kinds of people carrying MPVs, it's rather curious that it's taken them so long to get round to building a car like the C3 Picasso. Still, perhaps waiting a while was a good idea. Unlike obvious rivals like Renault's Modus, Nissan's Note or Vauxhall's Meriva, all of which come across as little more than glorified superminis, this Citroen genuinely does feel like a different concept - and one you could easily get used to.

It's also hitting the market at a good time, a period in which families are looking for excuses to downsize from larger cars. Would you gain much by opting for a much more expensive five-seater compact mini-MPV - say a Renault Scenic or a Ford C-MAX - over this car? We think not. Which says it all really.