THE new third generation Fiat Panda, on sale since February, comes larger, roomier and more fuel efficient than its predecessors.

This well loved urban trawler brings fun, style and functionality to the small car scene and, with its five doors and flexible interior the latest Panda is set to build on a reputation for convenience and durability that has been growing ever since the original first appeared in 1980.

With the continued popularity of downsizing, the concept of an attractive city car with room for five, an advanced range of economical engines, plus a host of big car features is appealing.

Thanks to an interior boasting greater flexibility and higher quality materials the Panda features some clever technology being made available on a small car for the first time - all cloaked in a stylish, yet friendly, design.

A trio of engine options are available headed by Fiat's award-winning TwinAir Turbo, which is driven here. The 875cc engine unit is said to feature the lowest carbon dioxide emissions of any quantity production petrol engine and it won International Engine of the Year 2011.

With 85bhp under the bonnet and decent average economy, this engine has cemented Fiat's position at the forefront of modern combustion engine development.

The TwinAir Turbo also comes with an Eco button on the dashboard. Pushing this changes the engine electronics to reduce torque while a sound Start&Stop system along with a gear shift Indicator, prompts the driver when to change gear in order to achieve the best economy.

In addition to new engines, the Fiat Panda has revised dimensions which make the car longer, wider and taller than the model it replaces, delivering more space for passengers and their luggage. But this model still maintains sufficiently small exterior dimensions to remain firmly sat in the city car category.

In fact, most of the Panda's growth in length is in the rear overhang to increase the new car's boot space, as well as offering more legroom to rear passengers who, for the first time, will benefit from a rear sliding door option. In addition, the new Panda is 66mm wider, which means it can seat three passengers comfortably in the rear.

For improved passenger and driver enjoyment there is all-new suspension to enjoy and a much more rigid body than its predecessor.

These attributes further improve the Panda's already impressive safety credentials, with up to six airbags - four of which are standard - ABS, optional electronic stability programme, plus an active anti-whiplash head restraint system is standard throughout the range while the Dualdrive power steering and "Smart Fuel" refuelling system add to its features.

In addition the Fiat dash has undergone a radical rework. Harking back to the 1980s the Panda also boasts a roomy storage pocket, plus there is a more convenient locking glovebox in the lower part of the dash while the rear backrest folds down to create 870 litres of boot space.

Despite the car being now in its 33 year, this is only the third incarnation of  the Fiat Panda, the small and stylish affordable people's car which has found more than 6.4 million homes worldwide since 1980.