STEP inside and it's hard to think of the new SsangYong Korando as a budget buy.

Rich leather adorns the seating (those in the front are even heated), a sparkling seven-inch touch screen with sat nav dominates the centre of the dash and the steering wheel is sprinkled with buttons and controls in an appropriately contemporary fashion.

This is the latest Korando ELX with automatic transmission and four wheel drive and a price tag of £22,495, but the range kicks off at a fiver under £16,000.

South Korea's oldest carmaker was taken over four years ago by Indian giant Mahindra and is determined to make its mark.

The Korando, which competes with compatriots such as Kia Sportage, Nissan Qashqai and Hyundai Tucson, now has a new diesel 2.2litre engine to replace the earlier 2.0litre unit which was criticised for being too thirsty, too dirty and rather unrefined.

With 176bhp on tap and a six speed auto box, the Giugiaro-styled five door has a 115mph top speed and acceleration to 62mph in under 10seconds, putting it on a par with the obvious rivals. An area where it scores strongly is as a tow car, having better than average towing capacity of two tonnes.

Standard equipment in the top-of-the range ELX includes air con, rear parking sensors, 18-inch alloys, heated front and rear seats, and electrically heated door mirrors.

Despite the fresh engine which complies with Euro 6 emissions regulations, it doesn't quite manage to match the competition in terms of refinement and smoothness. A gruff engine note becomes harsher as the revs mount and it's only when you throttle back in high gear that the proceedings become more relaxed.

The on-demand four wheel drive system ensures the Korando stays firmly planted on the road, even in slippery conditions. There's more body roll than average when you hurry around bends, but the handling is safe and predictable.

Off-road, the Korando will scrabble up snowy slopes and pick its way down muddy banks with ease, partly thanks to diff-lock which splits the power 50-50 over both axles. Only relatively low ground clearance prevents more adventurous excursions. Over normal surfaces it operates in fuel-sipping front drive mode only.

Generously proportioned, there space for five in the smart cabin and the rear seats fold flat for extra luggage room. Driving position is commanding and comfortable. The steering wheel adjusts both for height and telescopically and the driver's seat has six-way power adjustment.

All SsangYongs are supported by a five year warranty with unlimited mileage - one of the most generous schemes available.

Perhaps not quite as dynamically adept as some of its rivals, the latest Koranda is nevertheless great value for money and looks a much more expensive than the price tag it wears.