Hyundai’s already capable city car has benefited from an engine upgrade early in its life, says Peter Carroll.

Hyundai took a major step forward in quality with the introduction of its i10 city car in the UK last April – and if heads were not turned by the look of the car, they certainly were by its features and asking price of just £6,495.

Despite, or possibly because, of the economic downturn demand for the i10 has been high, with reports of waiting lists at some dealerships – but that hasn’t stopped the Koreans from boosting the range with the introduction of a new engine a few months into the car’s life.

Nor is the 1.2 litre engine a tweaked version of the old 1.1 either; it’s a completely new ‘Kappa’ power plant, offering considerable benefits in refinement and performance, with no penalty in fuel consumption or emissions.

The engine is made from aluminium and is the lightest in its class. It also boasts a number of engineering innovations which boost fuel consumption and reduce noise and vibration.

Power output is up by 18 per cent to 77bhp, and torque by an even more impressive 20 per cent, compared with the older engine. In practice, this makes the 1.2 more flexible and relaxed to drive than the 1.1 – and it’s surprisingly capable too.

It’s nice and sharp out of the blocks and is happy to rev. Even with four people on board the car will tackle hills eagerly – and you can’t say that about every 1.2 on the market.

While the i10 hits 60mph in around 12.5 seconds and has a top speed of over 100mph, it will also return up to 56.5mpg on the combined cycle. Its emissions are just of 119g/km, meaning annual road tax of just £35.

The downside is you won’t get it for quite the bargain price it was at its launch. Hyundai is continuing to sell 1.1 base models at under £7,000 but 1.2 i10s are realistically going to cost between £7,500 and £8,000 depending on trim level.

I drove the flagship 1.2 Style, which is very well-equipped but costs from £8,075 to put on the road. Factor in ESP, which is available as an option on the i10 for the first time, and metallic paint and the price rises to £8,775.

You do get an awful lot of kit for your money though – and in my opinion it’s worth paying the extra to get the better engine.

Style models not only have air conditioning (as do all i10s) they also have a heated, height- adjustable driver’s seat, central locking, electric front and rear windows, and even an electric sunroof.

Unlike previous offerings from the Far East, the stereo is properly integrated unto the dashboard – and there’s even iPod socket too. The handbrake and steering wheel are trimmed with leather, adding a bit of class to the interior.

There’s plenty of head room and legroom is reasonable for a car of this size. The boot is not the largest but will accommodate a few bags of shopping. The parcel lid usefully clips firmly into place.

The seats are on the firm side, as is the ride quality. Other than that it’s difficult to find fault with the i10. It goes well, handles well, and is cheap to run. And that’s before you factor in Hyundai’s pioneering five-year transferable warranty.

The design may not be not as funky that of the new Ford Ka, Fiat 500, or the Citroen C1/Peugeot 107/ Toyota Aygo family – but I suspect there will be plenty for whom this will not be an issue.

By Peter Carroll