Citroen have come a long way in the past few years. Once an exemplar of Gallic sophistication, the company went through an undistinguished spell in the eighties before reinventing itself in the nineties as a purveyor of cars that were among the best value in class. Now their ambitions are a little broader, the company looking to not only retain the value but to also boost the quality. The Citroen C2 shows that they may succeed with this approach and the 1.4-litre petrol models are bound to prove popular.

Prices for the 75bhp version kick off at just £9,795 for the Rhythm version and you'll pay £10,395 for the sportier VTR. These seem like reasonable levels given the healthy equipment quota offered with all the models. The urban jungle is where the C2 feels most at home, although the 1.4-litre engine endows the car with the legs to undertake longer journeys. A top speed of 105mph means that typical motorway cruising speeds aren't going to leave you looking like a shell shock victim after an hour behind the wheel although acceleration isn't that brisk: you'll need 13.9 seconds to hit 60mph.

Fuel economy is predictably good, the C2 averaging 35mpg around town, 57.6mpg on a long run with an overall combined fuel figure of 47mpg. It's worth calculating how many miles you drive per year and how many years you plan to own the car before plumping for a pricier diesel version. Chances are the C2 1.4 model will work out as the more economical all-round proposition. The downside of a small petrol engine is that it can feel a little weedy on long inclines and you may need to stir the gearbox a bit in order to maintain progress, although this is no great hardship. A further option is the C2 Stop & Start offered in Rhythm trim at £11,295 This model has a slightly more powerful 90bhp 16-valve version of this engine and turns it off when it's stationary, restarting it automatically when it's time to move off. Fuel savings in urban areas can be as much as 15%.

Although prices may not be as cheap as cars like the Fiat Panda and the Daihatsu Charade, the C2 1.4 certainly has a bigger and better engine than these models offer and also has those sought-after sporty looks. Sit inside a C2 and you're not constantly reminded of your penny-pinching ways. It feels cheeky, modern and agreeably sophisticated. The Rhythm version has an MP3 CD player, remote central locking with deadlocks, electric front windows and electric door mirrors. The VTR features VTS-lookalike sills and spoilers, making it a very attractive choice for the younger driver who still wants to cut a dash but doesn't fancy being taken to the cleaners by their insurance broker.

"A big car feel with small car prices."

Although it shares its chassis, drivetrains and a number of body and interior parts with the C3, don't think of this car as merely a scaled down version of Citroen's spherical supermini. The styling marks a different direction with a C3-style bulbous nose allied to a far edgier, angular back end. Although to some it might look like the results of two design studies fused at the door pillars, it's certainly distinctive. The side windows adopt a staggered line while the rear haunches blister out in a purposeful fashion and the latest models can be identified by a clear section in the tail-light clusters.

Whichever trim level you opt for, you'll find a car that maximises its use of available space very effectively. Despite being even shorter than a Saxo, it's easily able to seat four in comfort. Lessons have been learned from the reception given to the C3 interior and the C2 adopts many of the funkier styling touches such as the ventilation system and the bar rev counter and introduces a few of its own. The latest cars feature an upgraded dashboard, in high-grade plastic with silver detailing, which brings a pleasantly up-market feel to the cabin. There's a wide range of trim choices too, from sober monotones right up to the most extrovert two-tone designs.

The steering adjusts for rake and reach in all versions while plusher trims also get a height adjustable seat. Few will have any cause for complaint given the amount of space in the front of the cabin as it feels no smaller than the C3, a car already renowned for its spaciousness. Like the C3, the C2 gets a can holder ahead of the gear lever as well as generously proportioned door bins that can accommodate a 500ml bottle of pop. Access to the rear isn't bad and Citroen have displayed admirable pragmatism in failing to pretend that the C2 is anything other than a four seater.

So many small cars cram three belts in across the back and end up trussing occupants up like a leg of lamb but the two rear seats of the C2 are well sculpted and respectable in terms of knee and shoulder room although taller passengers may feel the sloping roof impinges on their coif. Opt for upspec models and the rear seats individually slide, recline, fold and tumble. This allows the owner to optimise luggage or passenger space by sliding the seats on runners but in order to fold the rear seats fully flat, the front ones need to be run a long way forward, precluding this possibility for long legged drivers and front passengers. All versions nevertheless get a tailgate that splits into two sections to ease loading in tight spots.

With a number of safety features that include twin front and side airbags, ABS brakes and power assisted steering across the range, the C2 looks a decent buy. Sophisticated electronics functions like automatic wipers and headlamps, rear parking sensors and folding rear mirrors are also available if you're prepared to dip into the wallet. Although the styling may divide opinion and the lack of three rear seats may strike it off the list of some, the C2 1.4-litre model is a class act.