Figure this one out for me if you can. Honda introduce an excellent 1.2-litre engine for the Jazz, price it aggressively and then ensure that all of the latest changes to the Jazz range are devoted solely to the 1.4-litre model. Despite not featuring the very latest styling tweaks, the smaller engined version still emerges as the pick of the range.

The 1.2-litre engine gives virtually nothing away in most objective measures to the 1.4-litre powerplant. Whereas the existing 1.4-litre unit is good for 83bhp, the 1.2-litre is only five horsepower shy at 78bhp. Top speed is identical and it's only a mite slower to 60mph. Fuel consumption goes up from 48.7 mpg to 51.4mpg which makes the 1.2-litre version one of the more economical petrol powered superminis. Despite this, it's still rather surprising that Honda have never developed a competitive compact diesel engine that could slot beneath the Jazz's stubby bonnet.

Whereas the 1.4-litre car is treated to a refresh of its styling, the 1.2-litre model is only available in base S specification and continues with the old car's lights, wheels and door mirrors - for the time being at least. Although this may seem a distinctly half-hearted way of introducing a 'new' model, it's merely a reality of the car industry that existing stock has to shift and it's best to do it as cheaply as possible. So it is that the 1.2-litre car does without 15-inch inch alloy wheels, door-mirror mounted LED indicators and the revised front and rear light clusters. With a price saving of nearly £2,000 over the 1.4-litre SE, the 1.2S driver may well be prepared to forego such fripperies in favour of the cold hard cash.

"The 1.2-litre engine makes the Jazz one of the more informed buys around"

Indeed, at £9,527, the Jazz is now priced so aggressively that many rivals are left looking rather silly. Citroen's C2 1.1SX is a good deal more expensive, as is a Ford Fiesta 1.25LX. The Jazz feels a more sophisticated proposition than both, even without the benefit of the latest styling tweaks. The entry level Mazda 2 weighs in more than the Jazz as does even the most basic Mitsubishi Colt 1.1-litre and basic fare like the Nissan Micra 1.2SE. Balance this against the vast welter of awards the Jazz has walked away with and you begin to realise the 1.2-litre model is a very smart buy indeed.

The Jazz has succeeded so well because it manages the essential compromises of the supermini market better than most. Manufacturers strive to build a car that's small on the outside yet spacious indoors, that's quick off the mark yet able to return impressive fuel economy. It's also about being able to create a stylish shape given all of the previous constraints. Some cars manage it far better than others, and the Jazz is prima facie evidence. The car market isn't entirely meritocratic though. The Jazz may well be the best supermini money can buy but it won't outsell a Peugeot 206 even with the addition of the 1.2-litre engine option.

The Jazz has been on sale in Japan for much longer than we've seen the car in Europe (badged as the 'Fit') and there, as here, has set class standards in terms of interior space. The designers have thought long and hard regarding the packaging of the car and have utilised Honda's expertise in MPV manufacture to engineer in a number of fundamental advantages. Moving the fuel tank from beneath the rear seats to a position under the front pair liberates the floor of the cabin and allows the seats to be folded into all sorts of permutations. Granted, you don't get the option of removing the rear seats but they almost make up for this in their sheer versatility. An innovative retraction system means that you're able to collapse the rear seats into the footwell with the headrests in place.

What's more impressive still is that this action doesn't involve scurrying around the car to manually slide the front seats forward, it can all be accomplished from the rear door thanks to a convenient set of levers. The result is a perfectly flat load floor 1740mm in length. Sports fans will appreciate the fact that if you then recline the front passenger seats, there's enough room inside the diminutive Jazz for a pair of 240cm long downhill skis! Honda have focused on making this trick seating system as user friendly as possible. Although the external dimensions only read 3,830mm long by 1,675mm wide, the Jazz is a good 1,525 mm tall. The driving position is fairly upright as a result and even those well over six feet tall should be able to find a comfortable position behind the wheel.

As much as we like the 1.4-litre Jazz, there's no getting away from the fact that the 1.2-litre S model - even without the latest nips and tucks - makes a far more convincing value proposition. If you're going to buy a supermini, it's pointless lavishing money on a top of the range version, as you won't recoup anything like that sum when the time comes to sell. The 1.2-litre S encapsulates all of the Jazz's inherent quality as well as its endearing personality and driving dynamics in a value pack that takes some beating.