In sales terms, the Freelander is one of the minor miracles of its time. It was introduced in 1997 and there has been a healthy flow through the dealerships ever since, with around 24,000 examples per annum going to UK owners since 2001. This is despite the fact that the compact premium 4x4 (as Land Rover describes it) has been facing increasingly stiff competition lately.This competition is one of the reasons why the Freelander has been considerably upgraded for 2004. Having created a new market seven years ago (much in the same way as Renault did with the original Megane Scenic), Land Rover can no longer rely simply on being the only player in the field.Well, perhaps it can in one respect. For anyone who needs a smallish vehicle with exceptional off-road and towing capabilities, the Freelander is an obvious choice. The mechanicals were heavily reworked three years ago, and there has been no change to the specification of the grubby bits since then.Attention has instead been paid to the on-road experience and the styling. It's difficult to miss the message even at a first glance - the front and rear ends have been updated very effectively with design cues from the way-upmarket Range Rover, the most noticeable change being the twin-pocket style headlamps. These are not there simply for show - Land Rover claims "whiter" light, a better spread and 70% greater intensity.The test car certainly illuminated night-time scenes with great efficiency. I kept having to adjust the beam height (using a switch to the left of the steering wheel) to avoid dazzling oncoming traffic, which I suppose demonstrates how powerful the new lights are.Redesigned front and rear bumpers - body-coloured rather than black as before - help the new look, and the rear lights are mounted higher to improve visibility for drivers behind and to reduce the possibility of the lenses picking up dirt. For the benefit of anyone who does a lot of off-roading, Land Rover says that the new bumpers do not affect the Freelander's approach and departure angles.If anything, even more attention has been paid to the cabin design, which is now quite up-to-date, if a little "busy" in some respects. The instruments are new (and easy to read), the seats are more supportive than they used to be and there's now a passenger airbag as standard on all models. Cup holder fans will be pleased to hear that the new Freelander has larger ones than the previous ones did, though since they're mounted on top of the dashboard you have to stretch your arm to be able to reach them.I used to find Freelanders quite cramped, but not now. Perhaps I'm shrinking, or perhaps Land Rover has found some extra interior volume without telling anyone. Either way, I had quite enough room in the front, and although the rear is a little tighter this is still a car which should be able to transport four six-footers without any complaints.Luggage space is inevitably limited in cars like this, but Land Rover has still managed to create a decent amount of it by clever packaging of the rear axle and suspension. This is quite refreshing, considering that other manufacturers seem to give up and offer tiny luggage areas in the hope that nobody will notice. Official figures are 546 litres with the rear seats in place and 1319 litres with them folded down.The range of engines is the same as before. You can specify 1.8-litre four-cylinder or 2.5-litre V6 petrol units, but I've never been convinced by the Freelander as a petrol model and was glad to hear in advance that what CARkeys would be testing was the two-litre Td4 turbo diesel.It's a decent unit, quieter than I remember it from previous Freelander tests, though with only 111bhp trying to haul 1600kg of body weight it does not make this car much of a performer. When there's no other traffic around it's quick enough, but you have to be sure of your ground before you try any overtaking manoeuvres.I'd still go for the diesel every time, though, as indeed most people seem to if they live in countries where they have the option. The Td4 accounts for 55% of global sales, even though it's not available in the US, the car's premier export market (Americans can buy only the V6, though they might clamour for an alternative if they paid anything like the same for petrol as we do over here).Even in five-door form, the Freelander is either short for its height or tall for its length, depending on where you first apply the tape measure. Normally that's not good news when it comes to on-road handling, and indeed the Freelander bristles with electronic aids such as traction control and brakeforce distribution just in case things go pear-shaped. But considering its dimensions it doesn't perform too badly on corners. You wouldn't take it out on a track day or anything, but it feels quite secure (despite an understandable amount of body movement) and has plenty of grip.The tall body - and it actually seems taller when you're in the car rather than standing beside it - allows a high seating position and therefore good visibility, a feature which no doubt accounts for a large proportion of Freelander sales over the years.Second opinion: The Td4 engine sounds decidedly rattly at tickover. Fortunately, once up and running the Freelander is quiet enough, even at motorway speeds. I thought the test car was commendably roomy up front and in the back seats (where passengers have the advantage of a higher interior roof line), and the load volume is pretty good, because there's a strong vertical component, as you might say, under the security cover. This is a car with plenty of stowage spaces in the cabin too, including bottom-hinged compartments in front of both driver and front passenger. The techno-style aluminium trim is up to date, and I liked the 2004 console and fascia layouts as well as the test car's perforated leather seats and Harman/Kardon sound system. And while fascia-top cupholders may be a little of a stretch, an extended picnic test confirmed that these ones are a lot more solidly based than any of the pop-out types. Like some other 4x4s in its class, the Freelander has an opening tailgate window. Unlike them, it doesn't open outwards, but slides up and down at the touch of a switch. Performance and economy with the Td4 engine? Well, the test car's transmission, with a five-speed automatic change on one side and a four-speed sequential on the other, dimmed the acceleration compared with the manual, but the engine provides 191lb/ft of torque from 1750rpm; so there's good mid-range pull on hills. Ross Finlay. Engine 1951cc, 4 cylinders Power 111bhp Transmission 5-speed automatic Fuel/CO2 32.8mpg / 240g/km Acceleration 0-62mph: 14.3 seconds Top speed 100mph Price £22,630 Details correct at publication date