SURPRISINGLY, Skoda had previously steered clear of the city car sector in its spectacular success story, but now it has entered the fray with a car blazing a trail of “firsts”.

The Fabia hatchback, a cornerstone of its strategy to offer affordable, reliable, well-engineered cars, was previously its most compact offering.

But the fast-expanding city car market has led to the launch of Citigo, marking Skoda’s debut in the segment.

It’s not alone, of course. Being part of the Volkswagen group, it is entering this market alongside similar offerings in the form of the VW Up and Seat Mii.

Not only is this the first subsupermini from Skoda, it’s the first to wear the company’s new badge, the first to feature the new Skoda family styling and it’s even the first Skoda to have head-thorax-side airbags.

Those “firsts” in themselves will probably not be enough to persuade buyers to part with their cash, and there’s no heartstring pull of the Fiat 500 here. But there’s a lot going on in this little package that makes for a most convincing modern car. Not least of the attractions are the prices, which start at an eyebrowraising £7,630.

It might be the smallest Skoda since the company stopped making motorbikes in the early 1900s, but it’s arguably the most cleverly packaged. It’s often said in the industry that the best engineers prefer working on the smallest cars, because they have chance to come up with plenty of ingenious solutions.

They must have loved the Citigo if that’s true, because at 3.56 metres long and 1.65 metres wide it’s one of the smallest four-seat cars you can buy. Not very spacious then, you might think, but you’d be wrong. Under the banner of “Simply Clever”, Skoda has created a car with “small outside, big inside”

credentials.

It will easily accommodate four adults and is packed with clever little storage ideas. There’s even a clip on the dashboard for holding photos of friends or car park tickets and a “curry hook” integrated into the glovebox to avoid your takeaway bag toppling on the floor.

Another bonus – and certain to be a key selling point – is the Navigon satellite-navigation system, optional on Ambition models and standard on the Elegance. It slots neatly on to a dashboard dock.

The Citigo will come in three trim levels; Active, Ambition and Elegance, of which about 70 per cent should be Ambition.

There’s only one engine, built in several different configurations. The 1.0-litre petrol is available in 59bhp and 74bhp outputs, each coming to the UK in eco-friendly Green tec format and using taller gearing, a start/stop system, low rolling resistance tyres and other modifications to force CO2 emissions below 100g/km on both versions. There’s also a non-Green tec 59bhp version which isn’t as frugal but has its own merits.

The taller gearing attached to the Green tec engine keeps revs lower for any given road speed, but it means the engine has to work harder when you put your foot down, blunting performance through the engine’s midrange. It’s as if you’re accelerating slightly uphill and only the 74bhp version overcomes it effectively. The 59bhp non-eco version is certainly more athletic than the equivalent Green tec car and is my pick of the bunch.

No review of the Citigo would be complete without mention of a couple of innovative features that come as options or standard features depending on the level of trim.

The first is City Safe Drive, an emergency braking function which activates at speeds below 19mph. It uses a laser sensor built into the windscreen to scan the road up to ten metres ahead. If it detects an impending crash, automatic braking can reduce the severity of an impact or even prevent it altogether.

The other is the dashboardmounted Personal Infotainment Device, which uses tough-screen technology to provide satellite navigation, Bluetooth phone connection, vehicle and trip information and a media player which can be synced to an external music device.

Available in a range of eight colours, there are also several “packs” to consider – much like the Mini buying experience, plus the choice of black wheel trims and body graphics. You can make your Citigo look quite tasty.

Common to all Citigos is the composed and comfortable ride, despite small wheels and a short wheelbase. It’s not sporty, by any stretch of the imagination, but it does provide a relaxed urban drive and with the higher power output copes well at higher speeds.

Easy to park, a doddle to drive and containing the sort of features that motorists in this sector now demand, it will put a smile on your face. It’s been a long time coming, but buyers will be happy with Skoda’s city car debut.

Fact file:

PRICE: starting at £7,630.

ENGINE: 1.0-litre threecylinder petrol producing 59bhp and 70lb.ft.

TRANSMISSION: five-speed manual gearbox driving the front wheels.

PERFORMANCE: top speed 99mph, 0-62mph in 13.9 seconds.

ECONOMY: 62.8mpg.

CO2 RATING: 105g/km.