The budget car market is, unsurprisingly, one of the few automotive sectors to have stood up relatively well to the recession.

Small city cars may not make big money for car manufacturers – but at least they are still selling.

So it’s important for volume manufacturers to have competitive vehicles in this area of the market.

Nissan has been conspicuous by its absence from the budget field till now.

The Japanese firm already has its Micra, of course, but this is not necessarily a cheap purchase, depending on trim and specification.

The position will change in June, however, when Nissan launches its ‘no frills’ Pixo.

Based heavily on Suzuki’s Alto, but with a new front end, the Pixo lacks features but will be cheap to run. It is economical and its CO2 emissions of just 103g/km are impressively low.

But its chief attribute is surely its price: the range will start at just £5,995 on the road, making the Pixo one of the cheapest cars to buy in the UK.

You might be able to get a Kia Picanto or Perodua Kenari for less, but there won’t be much in it.

So what’s the catch then? Well, if all you want is a cheap city runabout which won’t break the bank, there isn’t one: the Pixo seats four, is competent on the road, and running costs will be invitingly low.

What’s less appealing is its cabin’s utter lack of style.

The inside of the Pixo is drearily grey and functional, with hard plastics and cheap fabrics the order of the day. Nor is there that much room in the back.

Doubtless there will be plenty of cost-conscious motorists for whom this simply will not be an issue. As long as they can get from A to B with a minimum of fuss and expense they will not care.

But younger, more style-conscious motorists – who are maybe looking at their first new car – will surely prefer to turn to the funkier offerings from Citroen, Peugeot and Toyota, which can be had for a tad more cash.

Apart from its ‘hair shirt’ interior there’s little wrong with the Pixo. It’s not bad to drive and its one-litre, three-cylinder engine is pretty gutsy, provided you keep your right foot down.

The car will cruise happily at motorway speeds. It steers accurately and is smooth through the gears. There’s even a proper automatic version which could prove popular with elderly buyers.

The new Nissan is still to be given a Euro NCAP safety rating and it will be interesting to see how it fares.

The tests have just become stricter recently and the Pixo offers some of its safety features as options rather than as standard.

The base model, the Visia, comes with a CD/radio, rear wiper and ABS for your £5,995.

If you want features like air conditioning, extra airbags, and an electronic stability programme (ESP) you’ll need to find £7,645 for the flagship Tekna model.

That’s still pretty reasonable but does bring the Pixo up against Hyundai’s excellent little city car the i10 – a very capable all-rounder.

The Pixo is a tidy if basic product and Nissan could well achieve its target of 7,000 sales in the UK – even in the current market.

The Pixo is on sale on June 1.

By Peter Carroll

FACT FILE:

Model range: Pixo Visia, Acenta, Tekna

Price: From £5,995

Engine: 996cc, three cylinder, petrol

Power: 68PS

Transmission: Five speed manual, front wheel drive (auto optional)

Performance: 0-62mph in 14 seconds

Top speed: 96mph

Economy: 64.2mpg on combined cycle

CO2 emissions: 103g/km

Length: 3,565mm

Weight: 850kg