ONCE upon a time small cars were considered a bit of an afterthought by manufacturers - but these days they are big business.

Traditionally it was the case that they represented the less glamorous, budget end of the market and with profit margins tight for their makers there was little incentive to put too much love, care or imagination into their creation.

But all that changed with the likes of the MINI and the Fiat 500.

All of a sudden small cars became desirable and sought-after objects in their own right, rather than just a cheap and cheerful means of getting from A to B.

In addition, the days when motorists were by and large oblivious to the business of running costs and no-one even thought about the ozone layer or the world's oil supplies running out are long gone.

With fuel and running costs soaring ever upwards at an alarming rate, people's spending power on the decrease and environmental issues high on the agenda, small cars make a lot of sense.

And given the fact that these days small cars come with a fairly high specification and more than a fair few creature comforts, owning and driving one is no longer the hardship it used to be.

Though I am not a spokesman for the 'Bureau of Small Car Manufacturing' I would also like to point out that most smaller cars are also far bigger than they used to be.

Along with the very fashionable afore-mentioned MINI and Fiat 500 there's quite a range of snazzy and stylish small cars to choose from too and the Mazda2 is up there with the best of them.

The first thing that impressed me was how much better it is than its rather frumpy predecessor, which had sacrificed pretty much everything for the sake of interior space.

A ludicrously high roofline might have meant it felt like a mini MPV, but it had little going for it in terms of style or desirability.

The current Mazda2 looks rather swish and sporty but achieves it without compromising interior space.

Added to this it is well put together and feels good on the road. It has an assuredly stiff bodyshell and is considerably lighter than the old model, thanks to the use of some high-tensile steel.

The ride can be firm-ish on some surfaces but overall it handless nicely and offers a decent drive for a small car.

In terms of agility and driver satisfaction the 1.5-litre petrol engine is a good all-rounder. The smaller 1.3-litre petrol lacks a little bit of oomph.

However, if you want to make the most of small car cost savings then the 1.6 diesel is perhaps the best bet, though price-wise it is getting up into small hatchback territory.

I quite liked the automatic option too. Though to me it did feel somewhat strange in a car of such diminutive stature, I enjoyed the ease it lent to the business of driving around town where frequent gear changing can become a bit of a chore.