IN the perfect world (of cars, that is) you'd have a model that was neat and compact for town commuting, yet quiet and luxurious enough for long runs.

It would also have sufficient punch for swift overtaking.

Well, this utopia has long since been the aim for car designers the world over. And some have come impressively close to turning it into reality.

One such car is the current version of the long-running Toyota Yaris. The diminutive hatchback has in the past been a useful runabout with meagre thirst, great manoeuvrability but a modest performance.

Now, thanks to hybridisation and a larger 1.5-litre engine that pumps out 114bhp, it's got new spring in its step that allows it to despatch the 62mph dash in a creditable nine seconds. Not exactly hot hatch territory, but fast enough to put a smile on your face.

There's a choice of two power units, one developing 114bhp and the other 129bhp. Ours was the lesser powerful of the two, though I had to check the spec because it certainly felt lively enough.

Power drives the front wheels via a CVT automatic gearbox. Delivery is smooth and seamless - definitely better than many continuous variable transmissions which generally sound a tad frenetic.

Continuing the big-car theme, the Yaris feels well-measured and relaxed even when stretched. The current platform endows it with one of the most composed rides of any small car.

Steering is positive and reactive while the directional changes are coped with fluently and without drama. Road scars and minor pot-holes are floated over yet there's a pleasing absence of body roll during press-on motoring.

It's just a shame there aren't steering paddles to add greater driver involvement.

The cabin offers less to shout about, however. The front is acceptably spacious but the rear is somewhat cramped particularly if you have six-footers occupying the front seats.

There's a plethora of dark plastic about the facia and a few scratchy surfaces. Some of the buttons are minute and difficult to operate on the move.

Oddment space is generous enough with wide door pockets and several shelves to absorb bits and pieces. A remnant of the past is the tinny sound when doors are shut - an easy quibble to remedy.

The rear hatchback boot can carry 286 litres of cargo, about average for the class.

Economy is a vital factor when buying a small car, and here the Yaris scores highly. Our average of 58mpg included some rapid cross country running, town commuting and motorway cruising. Emissions are equally impressive at just 91g/km.

In Design trim, as reviewed here, the spec includes rear privacy glass, 16in alloys, LED headlights, heated door mirrors, acoustic windscreen and leather steering wheel and gear knob.

Noise levels are low except under full acceleration when the three-pot engine becomes more apparent, adding to the big-car feel and general refinement.