WHEN it comes to reinventing itself, Mazda has few peers.

The company has always had a reputation for bullet-proof reliability, but that also came with a reputation for building dull-looking cars - with honourable exceptions like the always excellent MX-5.

The introduction of the Mazda6 was the catalyst for a range of sharp-looking desirable vehicles - taking on the might of the Ford Mondeo  and VW Passat.

Now the Japanese firm is breaking all sales records in the teeth of turbulent financial conditions and it looks set to continue.

The latest Mazda2 continues the forward trend with its racy profile and sharp handling, but it too faces stiff competition, notably from the Ford Fiesta.

The streamlined and angular look is supplemented by neat light clusters and racy alloy wheels while he interior is pleasant if not class leading with a good level of standard equipment which makes it a comfortable place to be.

The trim has a plasticy feel to it, but is solid and built to last while the instrumentation is clear, concise and well laid out.

Interior space is fine for driver and three passengers but the boot is cramped and disappointingly small compared to some of the opposition.

Cars of this nature are not designed as load luggers, but even so a couple of shopping bags virtually filled the boot space, although extra space can be created by folding the rear seats.

The Mazda is a good performer providing and excellent drive and excellent economy, particularly from the 1.5-litre petrol engine powering the Sport model.

The on-board computer on the well-equipped little car never showed less than 40mpg, while providing excellent acceleration, although official figures suggest nearer 50mpg.

The  103bhp unit delivers plenty of urge in a car of this size with the 0-60mph sprint taking just over 11 seconds.

Decent performance then and good green credentials with CO2 emissions of only 135g/km putting it in the 16 per cent company car taxation bracket and road tax Band E.

On the road the car is a fun drive, from the brisk acceleration to the smooth-changing gearbox and sharp handling.

The ride is adequate but occupants certainly feel it when on anything other than smooth tarmac and can become easily unsettled.

The car comes in a number of specs, TS, TS2 and Sport with the base model starting at a tempting £9,820 for the 1.3-litre petrol TS, which undercuts many rivals.

Standard specification is high with the TS offering electric front windows and door mirrors, air con, central locking, alarm and decent sound system.

Safety is good with ABS, driver and passenger airbags and seatbelt pre-tensioners. The Sport adds side airbags, stability control, climate control, alloys and cruise control.