The cutthroat super-mini market must be one of the hardest market sectors in which to succeed in the UK. It may not be the most important in terms of profit margin but these are the mass manufacturers' bread and butter models. Current UK sales trends show more and more people getting into small cars due to reduced running costs and the big car manners and features of the latest generation. Another trend is the rapid growth of the diesel sector, as the technology of the oil burner closes the gap to its petrol brethren. The car on test here is Vauxhall's latest entry into the shark-infested waters of the small car market.

Driving the Corsa is standard supermini fare. The light steering is a real boon in town but lacks feel at speed. The wheel itself is good to hold and the integration of stereo controls is useful. The driving position is good with a decent range of adjustability on the seat and steering wheel. Rear visibility is excellent but the view out the front is obstructed by the thick A-pillars making it difficult to accurately place the nose at times, particularly in right hand bends. The ride is ok (not helped by the lower profile tyres on our test car no doubt), but there does appear to have been a fair amount of compromise made in order to cope with the extra weight of the CDTi engine up front. The handling is safe and predictable but the body roll is excessive; this is not a fun-handling supermini, although it does have good levels of grip. Straight-line performance is adequate but anyone expecting a zippy little hatchback is going to be disappointed.

Once the engine fills its lungs, at around 1700 rpm, then it picks up quite cleanly and quickly but this initial burst is short lived and meaningful urge has vanished by 3500 rpm. Revving beyond this is futile in terms of performance and foolhardy in terms of preserving one's eardrums. The engine gets harsh in its upper rev range and on the one trip to the redline (purely in the interest of science you understand) my female passenger commented that it "sounded like I was hurting it". Below 1500 rpm the little diesel is fairly bereft of life so one quickly slips back into the old school derv driving technique of riding the crest of torque over the 2000 rpm useful range and short shifting your way to your destination. That's not to say that the new 1.3-litre common rail diesel is a bad engine; it just isn't as potent or refined as the units found in its direct rivals. This is a pity really as the gearshift is one of the best we've come across in a Vauxhall (VX220 aside), and it deserves a better power plant to make the most of it.

Refinement is also not a strong point, with vibration evident through the wheel and pedals. At its worst at idle, it never really vanishes completely and is particularly noticeable when you open the throttle around the 2200 rpm mark in a high gear. The fuelling also cuts out fairly abruptly when you come off the throttle. If you look for them there are clues in the way the Corsa performs as to where it ekes out those mpg figures. Another clue may be in the weight saving strategy of not fitting much standard equipment.

The interior of the Corsa takes a quantum leap over that of the previous generation in quality and appearance, if not space. Compared to garish GSis and SRis of the past the layout is contemporary and understated. The optional leather seats fitted to our test car were supportive and comfortable; the heated option is always a bonus in winter. The dials are clear and all the controls are within easy reach of the driver. The stereo has the welcome feature of adjusting its volume according to road speed. A novel feature was the small light in the base of the rear view mirror, which sheds a small orange glow into the cabin. Good for a little bit of ambience; not so good as it catches your eye when it reflects off the aluminium gear knob trim. Whilst the interior is pleasant, the standard list of equipment isn't that generous. Most of the essentials are there such as electric windows, airbags and CD player, with luxuries consigned to the options list. This is a fairly common sense approach but some rivals are a little more generously equipped for the same price.

The exterior has been suitably breathed upon to help it live up to its SXi moniker. Alloys and coloured coded bumpers and trim help enhance the Corsa's basic sharp looks. Further touches include smoked rear light clusters and a new design of headlight unit.

Running the Corsa should be cheap, and not just due to the 60+ mpg economy. 20,000 mile service intervals mean infrequent trips to the dealer, for scheduled work at any rate, and the services themselves are inexpensive. Due to the low emissions the Corsa sits in the lowest tax band and insurance won't cause any nightmares either. The only thing to be wary of is the depreciation, which is traditionally savage on Vauxhalls. Those expensive options won't be worth much come resale time either.

On the whole the Corsa just about holds its own in what is one of the most competitive market sectors. It's cheap to run, easy to drive and looks good. These factors alone will guarantee sales with young drivers (particularly female) and make it a firm favourite with driving schools. The problem for the Corsa is the rate of progress amongst its competitors; average is no longer good enough. Brands such as Skoda now produce better quality products in this niche and others, such as the Citroen C2 and C3 are more fun. The Corsa does not have one outstanding ability that sets it apart, and in this day and age that can make a huge difference in terms of sales.