First launched in 1980, the Fiat Panda has sold more than 6.4 million models worldwide and this third generation looks like it will continue the success of the much-loved Panda.

The Panda may not be as cute as the Fiat 500, but it still has charm, it is iconic and it has cemented its reputation down the years as being a small, robust and reliable urbanite.

In a crowded sector of the market, the Fiat Panda stands out with its unusual styling. Read on to see how the Panda fares against its rivals.

Performance

There are a few appeling petrol engines to ponder. The 0.9-litre TwinAir turbo is probably going to lure a lot of people in as it produces 85bhp and will get from zero to 62mph in just 11.2 seconds – that is impressive when you consider many of its competitors average the benchmark sprint in around 14.5 seconds.

There is also a 68bhp 1.2-litre engine on offer. It will get from zero to 62mph in 14.2 seconds which is closer to its rivals – all the more reason to go for the TwinAir. If diesel is your prerogative then there is a 1.3-litre Multijet diesel, but we will get into the frugality of this engine a bit later.

The fact is, overtaking will have to be planned is every Panda model, but you should be fine when it comes to passing slower traffic like tractors on single lane carriageways, as long as you use the gearbox effectively.

Ride and Handling

When in town, press the 'city' button and this makes the steering lighter, great for parking and when you are negotiating tight spaces. The light steering of the city mode however can feel a little artificial.

The Fiat Panda has always been more fun that it may look from first glance. Even though the Panda has a fairly high stance it has minimal bodyroll and handles corners quite well. However, Ford's Ka and the Volkswagen up! are both more entertaining and give a greater amount of feedback through the steering wheel. When in town, press the 'city' button and this makes the steering lighter, great for parking and when you are negotiating tight spaces. The light steering of the city mode however can feel a little artificial. If you just want something that can act as a run-around, then the Panda is ideal. But if you want something you can have a bit of fun driving, go for the KA.

Interior and Equipment

The Fiat Panda is the bestselling car in Italy, by a long shot. Also, a Panda is a type of black and white bear.

The interior has been noticeably revamped. The plastics are a step up from the previous generation while the designers have had a play with the Panda name - etching it into the plastics so you can read Panda in almost every direction. Highlights on the entry level Pop model include MP3 compatibility, CD player and electric front windows. You will have to upgrade to the second trim, Easy, if you want air-con. The flagship Lounge model adds a height adjustable driver’s seat and 15-incha alloys. The Panda is one of the most charming cars in production. Yes it's small and compact, but it's robust at the same time making it a very useable and practical car. The Fiat Panda has a load space of 225 litres. This can be expanded to 260 litres by sliding the rear seat forward into the fully forward position. Fold the seats flat and the boot space will increase to 870 litres. That should be more than enough space for the majority of Panda owners. Keeping loose items out of sight is a piece of cake. The new Fiat Panda has 14 compartments.  From bottle holders to door side pockets, and cubbies for loose change, the Panda has it all. Fiat Panda practicality levels are brilliant for such a small car. Even the front passenger seat can be fitted with a backrest that folds down to form a table. The table can be used to place a bag on, or a laptop, or for oversize loads, like a thin bookcase.

Cost

Price wise, the Panda is more expensive than most of its city car competition – but for the extra price you get plenty of practicality. 

The 0.9-litre three-cylinder TwinAir is your best bet for low emissions as it emits as low as 95g/km when specified with the Dualogic gearbox. You can expect high 60s when it comes to mpg with the TwinAir. Some may opt for the 1.3-litre diesel to try and lower emissions, but the diesel isnt the best choice if you are just after a run-around. It does however emit 104g/km and return an average of around 70mpg – not too bad at all. Price wise, the Panda is more expensive than most of its city car competition – but for the extra price you get plenty of practicality.

Our Verdict

Robust, reliable and cheap to run - that's the latest Fiat Panda in a nutshell. From a design point of view, the Fiat Panda is as iconic as the original MINI and the Fiat 500.  When it comes to its price, it will probably come down to whether you need ample practicality as the Panda has this in buckets. But, in a nutshell, the Panda has a timeless design and is full of character. It is also easy to drive, making it one of the most sought after cars in the sector.