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There's an incredibly strong field in the city car class, with fresh-faced newcomers jockeying for position with established rivals. And the latest arrival is the Nissan Pixo.

It’s the result of a joint partnership with Suzuki – and if you think it looks familiar, so it should: the five-door hatch bears a close resemblance to its Alto sister car (here). The Pixo is the first Nissan to wear the new Pure Drive badging, reserved for the cars with the lowest emissions in the range. But is this just a gimmick? And how does it rate against another rival to come from a joint venture? The Peugeot 107 is the result of a collaboration between the French manufacturer, Citroen and Toyota.

If you are looking for a city car at the cheapest possible price, the recently revised 107 – along with its C1 and Aygo siblings – is the best option. We wanted to find out if the Pixo has what it takes to beat its French competitor, so we put a top-of-the-range Tekna model up against the 107 Urban. With the vehicles’ four-seater cabins and virtually identical engines, plus the fact that they are separated by only a few hundred pounds on price, the odds in this race are simply too close to call…

Verdict

City cars have one of the toughest job descriptions in the industry. They need to cost peanuts, yet look a million dollars. They have to be small, but spacious. And they should be fun to drive. It’s a tricky brief, and one of these cars manages to meet only three of the five criteria. The other hits four – so which is which?

Nissan’s Pixo is affordable, small, yet has room for four adults. The Peugeot is equally spacious, just as compact, looks great and is entertaining to drive, so it’s our favourite. But this talent comes at a price: the revised 107 isn’t as affordable or well equipped as its new rival.

However, the French city car possesses one quality that’s nowhere to be found in the Nissan – character – and this is enough to overcome its disadvantage. Although the Pixo is good value, you buy it like you would a washing machine: out of necessity rather than desire.

1st: Peugeot 107
The Peugeot is more expensive than its rival here, but is also more rewarding to look at, sit in and drive than the Nissan. Air-conditioning and ESP both cost extra, although the flagship Verve model gets the former for only £65 more.

2nd: Nissan Pixo
The Pixo has been designed to plug a gap in the Nissan line-up, and it feels like it. You can’t argue with its value or low emissions – lesser trim levels start from £6,995 – but it simply doesn’t have the cheeky appeal of its rival.