Daihatsu is a relatively minor brand in the UK, despite making cars since 1907. Since 1998, Daihatsu has been part of the Toyota conglomerate, and now describes itself as a manufacturer of compact cars. The corporate slogan "We make it compact" says it all. Small cars they may make, but the company has big aspirations for its new contender launched at the Geneva Show: the Sirion.

The Sirion could have stolen a march on the whole small car segment. Let's look at the basics: prices start at just £6,995 on-the-road for the entry-level 1.0 S model, which is about the same price as a Chevrolet Matiz. However, the Sirion is as large as a Ford Fiesta on the outside, and yet is more space efficient inside thanks to its tall styling. Don't think that you are flying economy in the Sirion either. Even the cheapest model has four airbags, anti-lock brakes, air conditioning, a CD/tuner, electric power steering, remote central locking and four electric windows.

Buyers don't always choose with their heads though, do they? The Sirion is quite a unique shape, sharing the upright sides with the tiny Charade, but with distinctive wheelarch extensions. At the show there were a variety of cars on display, including a cool looking 1.3 S concept complete with dual exhausts and body kit. The Sirion looks best in metallic colours, but we would steer clear of the frog green option. There will only ever be a five-door version available in the UK.

Two petrol engines are available, a 1-litre and a more sophisticated 1.3-litre with variable valve timing. Both engines are state of the art, setting new standards for fuel consumption. The Sirion also sees the first ever application of an 'intelligent' catalytic convertor that regenerates itself, greatly increasing its useful life. Buyers have the option of two trim levels and the 1.3 SE can be specified with an automatic, topping the range off at a heady £9,190. Expect to hear a lot more about Daihatsu in the coming years.

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