FIAT'S excellent Punto has been around for quite a while now, hoovering up awards and remaining a popular buy in the crucial city car market which accounts for 25 per cent of new car sales.

And the Italian car maker has sold more than 8.5 million of them throughout Europe since its launch in 1993.

So keeping the Punto fresh and appealing was the challenge for the latest model which arrived last yer. It featured a new trim line-up, available in either three or five doors and a wider range of greener engines including three petrol and two diesel units.

The car is smart and stylish, and has been for a few years now, one of the best looking in its class with angular lines and raked windscreen and neat light clusters that include the ubiquitous daytime running lights.

It also has the best interior yet, with everything including dials and switchgear, laid out in a neat and orderly fashion and the cabin having a high quality feel, especially in the high spec tested model.

It has loads of space, enough to accommodate four adults comfortably, good headroom and a big boot, one of the best in its class. The space here can be further increased with the split/folding rear seats.

I like Puntos, having owned a couple, but the most interesting of the engines must be the tiny, two-cylinder petrol unit which left me scratching my head.

Fiat claims it is a game-changer in terms of fuel economy and green technology.

It certainly is food for thought for potential buyers, emitting just 98g/km of CO2 and a claimed, if somewhat ambitious, 67.3mpg.

That means the car is exempt from road tax, attracts the lowest benefit in kind taxation for business users and is cheap to insure.

And just in case you forget that it is a two-cylinder engine, the constant clatter always there to remind you. A friend thought it was a diesel on start-up.

Fiat says the two cylinder configuration offers the performance of a four-cylinder combined with the economy of a two-cylinder and the sound-track of something that thrives on being driven. No argument with that then.

Considering its size, the 0.9-litre unit is quite lively, but the long gearing is confusing while the gear change indicator is urging you to change up or down when not appropriate.

Having said that it cruises quite comfortably at high speeds, about the only time you can comfortably get into sixth gear.

It is cheaper than excellent diesel in terms of purchase price, but the oil burning unit is still a cheap car to fuel and run while the conventional petrol engines are pretty good as well.

There are five trim levels, the Pop, Easy, Lounge and GBT and TwinAir. The Pop version is cheap to buy, but does lose out on some pretty basic equipment. It has been designed, says Fiat, to appeal to price sensitive customers.

The TwinAir model offers plenty of goodies including 15-inch multi-spoke diamond finish wheels, glossy black covers for the door mirrors and door pillars and darkened privacy glass. It does look good.

This is on top of electric windows and door mirrors, air conditioning, and a sound system with MP3 compatability.

On the road the Punto rides well and is handles reasonably well, while the city button on the dash makes the steering lighter for easier manoeuverability, but it is more likely to be used for shorter journeys around town or in the village.

Sales of the Punto speak for themselves. This is cheapish car to  buy - but is by no means cheap quality and still one of the best looking around.