Fiat has launched its new Panda and it’s now longer, wider and more practical than its predecessor. The new model will appeal to more buyers than ever, says Fiat, as it looks to pull in buyers from the growing number of downsizers that are flooding the market. Key to its success, alongside its improved practicality, are its low emissions and impressive fuel economy figures which make it an affordable, all round package for UK buyers. Upgrades and generation changes Fiat has done a good job of rounding the edges and corners of the new Panda five door hatch - smoothing the cube - while retaining a lot of headroom inside, even for those in the back. The overall length, width and height have all been marginally increased. Access is easy, particularly into the front seats, and the fifth door opens from knee height to reveal a low sill and reasonable sized bootspace. The back seat folds but the loadbed is not completely flat, although it has a further small compartment beneath. The driving position seems fairly upright and gives good visibility all round thanks to the low waistline, deep windows and slim pillars to the high roof. Everything comes immediately to hand and foot, the controls are light and direct and the instruments clear and cleanly styled. Heating and ventilation is straightforward, oddments spaces plentiful. The front seats are particularly well shaped and locate occupants well but the rear bench type seat is flat and shapeless and lacks thigh support if you have long legs. Fiat has completely redesigned or re-engineered the front and rear suspension to improve ride and handling and uses the latest high strength steel to keep down weight while ensuring rigidity and body strength. Ride quality was slightly firm but generally it soaked up bumps without too much trouble and a slight amount of body roll on tight turns. The comparatively short wheelbase meant it struggled over bumpy sections and you could hear the suspension working hard. Road noise was ever present, mostly the tyre rumbles on tarmac, but powertrain noise was low so long as you did not push the engines too hard. Engines and performance I tried three engines in the new Panda series and found the 85bhp TwinAir Turbo’s two-cylinder throb was addictive and surprisingly pleasant as it pushed out the power and gave the new Panda an agile feel and indicated consumption of 48.3mpg. The mainstream 1.2-litre Fire 69bhp unit was much smoother and had a busier note, pulling the car along fairly well in country traffic at 46mpg, but it was not particularly strong moving from rest with two aboard and it sometimes felt like it needed a sixth gear on more open roads. That was even more evident in the 75bhp 1.3-litre MultiJet diesel because it had bags of torque low down but soon ran out of breath at higher revolutions. In give and take traffic it was the most desirable of the trio tested and it returned a remarkable 64.9mpg as well, making it the economy champion and for my money the best of the bunch for a driver. Small diesels have never done as well as you might expect in the city-car sector but the ease of driving, the abundance of ready power and the all round competence and economy of the Fiat 1.3-litre MultiJet really deserves to be considered as one of the best of the new breed for buyers who want economy without sacrificing sophistication in a small car. Fiat Panda Milestones Fiat Panda 1.2-litre Easy £9,550 (predicted best seller) Mechanical: 4cyl, 1242cc Fire petrol unit, 69hp, 102Nm of torque at 3,000rpm, 5speed manual gearbox. Dualdrive variable ratio electric powered rack and pinion steering, solid front disc and rear drum brakes, independent front struts and rear Torsion beam. Dimensions and weight: Length 3.65m, width 1.64m, height 1.55m, kerb-weight 1015kg. Emissions: 120gkm CO2, VED road tax £0 First5 Year rate then £30 per annum. Performance: Maximum speed 102mph, 0-62mph 14.2seconds, combined consumption 54.2mpg (46mpg as tested). For: Compact, agile, easy to drive, versatile. Against: Limited rear legroom, slow acceleration, body roll.