THE rise of the city car is unstoppable due to soaring fuel prices and tightening emission controls.

But this is no bad thing because the latest crop of wheels for the urban environment demonstrates a brilliance the like of which has rarely been seen in this market sector.

The VW Audi Group was quick to take up the challenge and one of its best examples of small is definitely beautiful comes from Skoda.

The little Skoda Citigo followed hot on the heels of the VW up!, and is a charismatic little number which proves without doubt that a small, economical car can be anything but boring.

Bearing the latest Skoda corporate badge, the Citigo is typical of the brand's latest products, with clear shapes, precise edges calm surfaces and nothing to disrupt the purity of line.

Apart from being a good looker, with a little bit of cheeky road stance thrown in, Citigo speaks a lot of sense with stacks of interior space and a generous boot for its size.

But its big pull is the engine. Like a lot of urban-orientated cars, Citigo is petrol powered, and in this case a new three-cylinder, transversely mounted 1.0-litre lightweight aluminium engine throbs away under the bonnet.

There is a choice of two power outputs, 60 or 75ps, and both have been designed to offer the best possible fuel efficiency in crowded streets. I have been driving the most frugal, the 60ps in Elegance trim and five-door bodywork.

Costing £9,820 this model makes a lot of sense with 68.9mpg on the combined cycle and emissions of just 96g/km. And it is no slouch with 100mph in its sights.

Although 62mph comes up in a little leisurely 14.4 seconds the little three-cylinder petrol engine is spirited and sounds remarkably aggressive when pushed.

It reaches its optimum operating temperature quickly, even during short trips helping with its fuel efficiency

This engine is yet another demonstration of what can be squeezed out of a small petrol unit.

It has a hearty beat and even the more powerful 75ps version can achieve a combined economy figure of 67.3mpg with a top speed of 107mph and a 0-62mph sprint of 13.2 seconds.

The GreenTech version features such advanced technology as brake energy recuperation and low-rolling resistance tyres. Not forgetting the start/stop system which lowers the Citigo's consumption by almost nine per cent.

With plenty of knee and headroom for rear seat passengers and even creditable boot space, the Citigo is yet another example of the quality engineering emanating from Skoda. But this little car has a secret weapon to net sales. It is such a cheeky little character that it generates smiles wherever it goes - a quality that it priceless.