Good looks, excellent quality and smart packaging have swiftly propelled Kia’s little newcomer straight to the top step of the awards podium.

Just months after going on sale, the Korean-built city car has just been voted Car of the Year by the notoriously hard-to-please Northern Group of Motoring Writers.

The seal of approval is well deserved for a practical city nipper which neatly combines an attractive price tag with a real dash of style.

Priced from just under £8,000, the second-generation Picanto, which comes with a choice of efficient 1.0 and 1.25-litre petrol engines and three trim levels, delivers better performance than its predecessor with lower fuel consumption and CO2 emissions.

The larger engine, fitted to the test car, is available with Kia’s EcoDynamics fuel-saving system — an Intelligent Stop & Go engine stop/start system — or, alternatively with automatic transmission.

Where the previous model was regarded as a little cutie, the new model is a tougher cookie, with muscular wheel arches, low and wide rocker panels and, on upmarket models, wide-set alloy wheels.

The new Picanto is only 60mm longer than its predecessor so that it still occupies slightly less than 3.6 metres of road space; but an increase of 15mm in wheelbase, allied to some clever packaging, have resulted in a tangible increase in cabin space. Front legroom has increased and luggage capacity is up 27 per cent.

Best of all, the little car is more fun to drive, with a more supple ride, improved stability and comfort and a noticeable increase in agility.

Safety is up there with the best and all models come with electronic stability control, to keep the car on course in slippery conditions, along with anti-lock brakes, electronic brake-force distribution and emergency brake-assist system.

And should the worst happen, every Picanto has a six-strong array of front, side and curtain airbags to cushion against impacts from any angle.

Standard features are also impressive for a car designed primarily for round-town work, and include power steering, height-adjustable driver’s seat, a tilt-adjustable steering column, body-coloured bumpers, mirrors and door handles, and tinted glass. In-car entertainment is provided by a four-speaker radio and CD player with MP3 compatibility. The range-topper boasts six speakers and all versions above the Picanto 1, and 1 Air also have USB and AUX ports, an iPod cable and steering wheel-mounted audio controls.

And that’s not to mention the best warranty in the business – seven years or 100,000 miles. No wonder the folks up north were impressed.

Auto facts Kia Picanto 1.25 2 EcoDynamics

  • Price: £10,195
  • Insurance group: TBC
  • Fuel consumption (Combined): 65.7mpg
  • Top speed: 106mph
  • Length: 359.5cm/141.5in
  • Width: 159.5cm/62.8in
  • Luggage capacity: Seven cu ft
  • Fuel tank capacity: 7.7 gallons/35 litres
  • CO2 emissions: 100g/km
  • Warranty: Seven years/100,000 miles