Proton Satria

How's this for a new 'Lotus' costing £7,500? Developed with the help of handling experts at the Norfolk sports car firm, it's the new Proton Satria.

The latest value-for-money three-door supermini was unveiled for the first time this week by the Malaysian company with these official pictures. And as you can see, the designers have gone for a sporty look inside and out.

Prices will start at £7,500 when the Proton hits British showrooms in January. Replacing the old Mitsubishi Colt-based model - which was axed in 2004 - the newcomer is set to take on established offerings such as the Fiat Grande Punto in the increasingly crowded supermini class.

Yet despite its budget price, buyers clearly won't have to skimp on style. Hot hatch fans with fond memories of the old Satria GTi won't be disappointed, either, with a turbocharged version on the cards. However, the fastest Satria is not due until 2008. Before then, engine options will comprise the firm's 94bhp 1.3 and 110bhp 1.6-litre petrol motors.

In Issue 873, we revealed the disguised GTi - codenamed SRM - being put through its paces. It will feature lower suspension and a centre-mounted exhaust pipe, while the powerplant will be tweaked by Lotus engineers.

However, that's not the only Proton on the horizon. From October, the firm's small family car, the Gen2, will get an improved interior with a smart black finish. Bosses have also revealed plans for estate and saloon variants.