THERE’S no more difficult task in the motoring world than creating a good small car.

Small cars cost virtually as much as larger ones to design, develop and crucially to build, yet you have to sell them at a cheap price. And when once you could get away with having a small, cheap car that felt small and cheap, you fussy lot want a small car that is neither of those things, has big-car options and can do long motorway treks too.

How on earth is that going to be possible?

There are ways and means. The Spanish brand Seat is part of the Volkswagen Group, and that means shared technologies across the various manufacturers within. As an ordinary buyer, this information is almost irrelevant, but the effects of it are hugely beneficial: you get a lot more for your pound as a result.

There are other versions of this small city car within the group, and they all have a slightly different take on the genre.

This being a Seat means there is a sportier flavour, and you get that from the moment you first set eyes on the Mii.

The nose has the sharp-edged Seat family grille, the lights are edgy and look expensive and the numerous creases and edges in the bodywork give it a toughness that adds to the appeal. You can add styling packs, but even the standard car has plenty of personality.

That personality and young-at-heart feel is vital for a car like the Mii, which will be pored over by young drivers looking for a first car that’s not only inexpensive to buy but also cheap to run and attracting a very low insurance rating (1E to 2E) Probably the most impressive element of the Mii is when you step inside, however. The amount of space simply doesn’t seem to tie in with the exterior dimensions. The combination of plenty of light and a simple but attractive dashboard means a remarkably generous cabin, and not just for those sitting in the front.

Adults can sit comfortably in the back, and for a city car that is no mean feat.

Even with a pair of adults on the back seat you can still stuff 251 litres of luggage behind them.

At 3.56 metres in length, it is 50cm shorter than the compact Ibiza, yet the Mii’s wheelbase is almost as long. With the well-packaged 1.0-litre power units moved as far forward in the car as possible, the Mii creates large and flexible space while providing the stability and comfort of a much bigger car. It also has another key attribute for a city car – a compact turning circle of only 9.8 metres.

Powering the Mii is a choice of two latest-generation petrol engines, with a three-cylinder configuration, 999 cc capacity and a choice of 60 PS and 75 PS outputs. Built to deliver maximum efficiency, all Miis produce 108 g/km of CO2 or less – with the Ecomotive models delivering an exemplary 96 g/km.

The three-cylinder configuration gives it real character, and its thrum when pressed and willingness to rev will again go down well with younger drivers.

Unusually for this segment, there is an option of a five-speed automatic gearbox, tested here. Twin electric motors are responsible for shifting gears, while a third actuates the clutch. In D mode, shift points are made for maximum fuel efficiency, while the driver has the option of shifting manually.

The key to driving with this type of auto box is not to press too hard – otherwise you will find the transmission system pushing back. It makes for a relaxed drive as long as you aren’t looking for eager acceleration.

The Mii doesn’t feel like a small car out on the road; the steering, although electrically assisted, isn’t overly light and responds with accuracy. The ride is surprisingly grown-up too, tracking through bends with confidence and with the underlying security of ESP on most models.

The small price tag doesn’t mean compromises in the quality either. It’s a grown-up cabin, with smart instrument graphics, quality switchgear and a sophisticated feel. It’s a pleasure to operate rather than a constant reminder of how little money you’ve spent.

Equipment levels are generous and all models bar the entry-level S have air conditioning, ESP and remote locking.

Forget the notion that you have to buy a car like the Mii because you can’t afford anything bigger or better. This is a car you can buy because of how good it is, and you might wonder why you need anything more.

Fact File

Seat Mii SE Auto

Price: £10,840

Engine: 1.0-litre three-cylinder petrol engine producing 74bhp

Transmission: five-speed manual transmission driving the front wheels

Performance: top speed 106mph, 0-62mph in 13.9 seconds

Economy: 62.8mpg

CO2 rating: 105g/km