The fact that you need to put the key into the door of Hyundai’s i10 to open it, might tempt you into thinking that here is a cheap, cheerful and thoroughly old fashioned city car. Nothing could be further from the truth.

The refreshed i10, particularly the new Blue version, is at the cutting edge of the move to make 21st-century motoring as cost-effective as possible.

With a new three-cylinder, 1.0-litre engine, the i10 Blue is the cheapest five-door, five-seater on the market to achieve carbon dioxide emissions of under 100 grams per kilometre. That sounds complicated, but it simply translates into a car that is exempt from both road tax and the London Congestion Charge. Add to that a system that automatically kills and re-engages the engine when the car is idling to save fuel, low-rolling resistance tyres, and an ‘eco shift’ indicator to suggest when to change gear, and you have a car capable of delivering day-to-day fuel consumption in the high sixties. First and foremost, the i10 is a city car. Power-assisted steering and compact dimensions mean it’s right at home tackling crowded streets and tight parking spaces.

But with a power output of 68 horsepower, the car is more than capable of keeping up with motorway traffic flows, without feeling strained, even when fully loaded. Yes, road noise creeps up as you approach 70mph, and it is sensitive to poor road surfaces, but in or out of town, the i10 is a thoroughly accomplished performer.

Passengers are well catered for with the use of a long wheelbase giving maximum cabin space, while still leaving a boot capable of taking a trolley load of shopping.

Cabin trim is plusher than before, with chrome-finished door handles and a chrome-finished gear knob, along with an optional leather-trimmed steering wheel and handbrake.

The range starts at about £8,200 and specification is generous, with every model fitted with anti-lock brakes and four airbags, and equipment ranging from air conditioning, electric windows and central locking, to a six-speaker stereo and USB and iPod plug-in.

For those who want more performance, a new 1.25-litre engine is available, delivering 85 horsepower. The final element of the Hyundai package, which has proved a clincher for many private buyers, is the company’s five-year, unlimited mileage warranty with roadside assistance and free checks.

Auto facts Hyundai i10 Blue

Price: £9,195

Insurance group: 9 (1-50)

Fuel consumption (Combined): 67.3mpg

Top speed: 93mph

Length: 356.5cm/140.3in

Width: 159.5cm/62.8in

Luggage capacity: 7.9 cu ft

Fuel tank capacity: 7.7 gallons/35 litres

CO2 emissions: 99g/km

Warranty: 5 years/unlimited mileage