New Car Honours 2006

	Capable on motorways and B-roads, while in the urban jungle there's nothing better

Do not underestimate the importance of the Fiat Panda - it proved the Italian marque hadn't forgotten how to build fantastic small models. The winner of our overall Car of the Year award in 2004, it still gives buyers exactly what they need.

This is one offering that's small yet perfectly formed. Not only does the bodywork manage to look both cute and sturdy, but it's well designed inside. Robust, attractive and cleverly laid out with the gearlever mounted high up, from the moment you step inside, you know this car will be fun to drive.

And it doesn't disappoint, proving capable on motorways and B-roads, while in the urban jungle there's nothing better. Great all-round visibility, light steering, a tight turning circle, snappy gearbox and torquey engines make this a big-hearted companion that loves to be in the thick of the action.