Toyota Yaris

So what's the point of producing a diesel version? Is it really worth the sacrifices in performance and refinement for a few extra miles? Well, Toyota claims you don't have to put up with either with its new baby, and you can still have one of the most economical cars on sale in this country. The Japanese manufacturer's innovative new D4-D engines are already regarded as some of the most powerful, refined and torquey in their respective classes - and the all-new Yaris powerplant is certainly no different.

As with all diesels, it sounds a bit clattery at idle, especially from the outside. But once you're inside the cabin and on the move, only the rev counter and shorter gearing offer the slightest hint that the car is an oil-burner.

On paper, the engine's 75bhp doesn't sound very much. But with diesels it's torque that matters, and the Yaris packs plenty, producing 170Nm at only 2,000rpm. On the road, that translates to peppy performance and gutsy acceleration, with figures that are only a fraction behind those of the 1.3-litre petrol-powered Yaris. A respectable 0-60mph sprint time of 12.9 seconds and a top speed of 106mph will be easily enough for most buyers, while a claimed 64.2mpg combined fuel economy figure is pretty much identical to that of Volkswagen's Lupo TDI, and only narrowly behind the less powerful Renault Clio's 65.7mpg.

The Yaris and Lupo also share similar CO2 ratings, with the Toyota emitting 117g/km, compared to the VW's figure of 119g/km. That puts both in the lowest company car tax band - ideal for business users.

We've always admired the Yaris's entertaining handling and Toyota's engineers have gone to great lengths to make sure the extra weight of the D4-D doesn't upset the supermini's balance. Stiffer springs and different front dampers do a reasonable job, although the car tends to dive into corners more steeply than its petrol-powered stablemates, and the ride is noticeably choppier around town. That said, it grips adequately and is fairly well balanced, although keen drivers may find the steering feels a touch over-light, especially at speed.

Other than that, it's business as usual with class-leading interior space, solid equipment levels, strong used values and impressive build quality all boosting the appeal of the newcomer.

In fact, we have only one real complaint about the new Toyota. UK prices have yet to be confirmed, but they are likely to be about ί¿½500 higher than the D4-D's petrol equivalents - a hefty increase which will cancel out the savings for low-mileage users. So buyers can expect to pay ί¿½8,000 for the entry-level three-door S, rising to just under ί¿½12,000 for the well specified, range-topping CDX five-door.

Toyota's first small diesel has the class-leading Lupo in its sights. It's not as much fun as the petrol cars, but the D4-D is a sensible, frugal choice that's as appealing as the rest of the line-up. We've always liked the Yaris, and with the diesel the range is even better - but we'd quibble about the price.

At a glance

* Yaris D4-D on sale March 2002, priced from ί¿½8,000 to ί¿½12,000

* Uses all-new 4-cyl diesel unit, also set to appear in the MINI

* Three-door, five-door and Verso available, but no auto option