THE fuel-sipping Mirage is no illusion. The supermini-sized entry level model to the Mitsubishi range really does cost a city car price.

The five-door Mirage, built in Thailand to help boost sales in the emerging Asian market, has replaced the European-built Colt hatchback.

It has been designed to be lightweight, aerodynamic, fuel efficient and, with CO2 emissions of no more than 100g/km, exempt from road tax.

Benefit in Kind taxation rates mean that company car drivers will pay no more than 15% although I don't think you will see many Mirage models in the office car park.

Two three-cylinder petrol engines are offered - a 70bhp 1.0-litre emitting 96g/km of CO2 and a 1.2-litre with Auto Stop and Go emitting 100g/km (95g/km with CVT automatic transmission).

Top speed for the 1.2-litre manual version is 112mph which is faster than most of its rivals.

Those competitors, however, do include some heavy punchers like the VW up!/SEAT Mii/Skoda Citigo trio, the Toyota Aygo, Kia Picanto, Hyundai i20, Honda Jazz, Mazda2 and Ford Fiesta so the Mirage has a tough fight on its hands in the marketplace.

The majority of buyers are likely to opt for the 1.2-litre engine which comes in thre elevels of trim - Mirage, Mirage 2 and the Mirage 3 driven here which is proving the most popular. It costs just £11,399.

The Mirage is slightly shorter than the Colt it has replaced, but clever packaging means it offers more interior space and better legroom as well as a larger boot - 235 litrtes rising to 600 litres when the rear seats are folded.

Price and low running costs are obviously its main strengths but specification levels are also impressive.

The entry level gets front electric windows, radio/CD player, stability control and traction control. Mirage 2 adds manual air con, remote central locking, rear elecric windows, auto lights and wipers and powered door mirrors while the Mirage 3 has larger 15-inch alloys, keyless entry with push button start, auto air con and front and rear parking sensors although the car's smallish dimensions and excellent visibility means parking is a pretty simple affair anyway.

The cabin is well put together. Given its low showroom price, the quality was better than I was expecting.

Where the Mirage lets itself down is how it drives compared to its rivals. Ride quality is harsh, admittedly not helped by the poor state of UK road surfaces but I am not sure roads in emerging markets in places like Thailand, Malaya, Vietnam or China are any better.

Handling is not very sharp or controlled either but perhaps buyers will think the price, cabin space and kit levels are more important than its driving dynamics.

The 1.2-litre engine performed reasonably well. It has a gruff sounding, high revving engine note but the five-speed manual gearbox was slick and light to use. Fuel economy was just over 50mpg on mostly urban roads - good but not very close to the official 65.7mpg claimed by Mitsubishi.