VW are enjoying good times in the marketplace today. Leaders in terms of interior quality, every model possesses that certain something that gives it an air of superiority when compared to competitors. The Polo platform was first seen in the revelation that is the Skoda Fabia; in that guise it won numerous awards. The new Polo had a tough act to follow but VW was confident that it could build enough of a difference in character between the two to have another car in the sector (as well as the Seat Ibiza). Here we test the 1.4 TDi Sport.

The styling is clean and classy; a refreshing change is the lack of needless plastic body addenda that so clutters many modern hatches with sporting pretensions. The E-class aping front light treatment is particularly well executed and is a welcome departure from the same-same styling of previous Polos. VW has added big car looks to a small car, although this new Polo is bigger than a Mk 2 Golf. The subtle spoilers are just enough to set the Sport apart from the run of the mill versions but it should be noted that the vital ingredient to its looks, the 16-inch 'Barcelona' alloys pictured here are an option, and a fairly essential one for the image conscious buyer.

Whilst the alloys set off the looks perfectly they over endow the chassis with grip; 205/45 WR16 tyres on a car this size give huge levels of adhesion, particularly in the dry, and effectively rob the helm of any real feel. As with most sporting VWs and Audis, the Sport name basically entails big tyres and stiff suspension with little driver involvement or chassis delicacy. The stiff springs and shallow sidewalls corrupt the normally excellent ride quality of the Polo platform, but it has to be said that the Polo corners quickly and flatly; fun is not really a keyword though.

You can gain some satisfaction in driving the car smoothly and quickly, not always an easy task in a lowly powered small hatch. You find yourself driving in a higher gear than normal to ensure the relatively narrow power band of the diesel doesn't spoil the attitude of the car mid-corner as it begins to run out of air. Stiff springs give the car a decent turn in and the grip levels help to ensure that it resists understeer gamely. The optional ESP seems needless; if you're driving hard enough to activate it, the chances are that you've already crossed the boundary between safe and stupid. It's worth noting that, as with other sporting diesels we've tested lately, left foot braking is greeted with a cut-off in the fuel, rendering the exercise futile; a shame for the purist.

The brakes themselves are excellent. Discs all round ensure consistent, repeatable fade resistant stopping power in virtually all conditions. The ABS is one of the best systems we've tried, allowing you to modulate the brakes accurately before it cuts in at the very last second. A little more pedal feel might be nice, but generally the brakes are probably one of the Polo's best sporting attributes, along with the gearshift that encourages you to work the 'box. On the subject of pedals, we found the clutch foot rest to be too high for comfort, but then it probably isn't placed for the larger than average male's feet.

The three-cylinder 75 bhp 1.4 TDi engine runs with a characterful 'dugga-dugga-dugga' soundtrack and is relatively quiet, revving smoothly, if slowly to its red line. All-out speed is not a strong point and you soon settle in to driving between 2000 and 3500 rpm. Its real forte is economy, returning 50 mpg in everyday use with us and offering a sufficient amount of in-gear urge. A lack of thrust below 2000 rpm means quick getaways at roundabout necessitate a fair amount of throttle to ensure you don't trickle out of your junction off-boost. Also, the inherent imbalance of a three-cylinder engine with a relatively large capacity remains, with vibration through the pedals, steering and gearbox noticeable the majority of the time. This is at odds with the rest of the car, which is classy and refined. Having said this the Polo is a particularly capable motorway cruiser thanks to its long fifth gear, but will always be more at home in the urban throng.

The driving position is good but the seats lack the support you'd expect of a sporting car, though the seat base also pivots to allow a degree of height adjustability. The wheel is good to hold and has a good range of movement to find the most comfortable position; a clever feature is the damping on the rake adjustment that effectively holds the wheel at your selected angle to allow you to adjust the reach at the same time: a nice touch. A lack of feel and feedback through the wheel is the only black mark, but a significant one for the keen driver.

The above concentrates on the sporting prowess of the Polo, something somewhat dictated by the Sport name tag, but VW would probably admit that this isn't intended to be a warm hatch. No, where the Polo scores big is in terms of the quality of its construction and the materials used there in. The interior is class leading by a significant margin. Save for the lack of colour and the distraction of light bouncing off the optional satnav's screen there is very little to complain about. Here the benefit of platform sharing pays off as the Polo gleans parts and features from the bigger VW and Audi family members to offer real big car feel in a small package. Semi-automatic climate control, one-touch windows on both sides, a quality CD player and a genuinely useful multi function trip computer ensure an excellent quality of life for the passengers. Features such as the lane changer function on the indicators (one tap equals four flashes) continue the theme of user-friendly technology. In terms of options I'd say the Xenon lights and Barcelona alloys are worth the extra money; however, the traction control and stability control are not.

Overall, the Polo offers a great blend of economy and style in a classy package, which should ensure that it racks up the sales in its target sectors. However the £12k list price for this Sport model will mean that those looking for a more serious enthusiast targeted hatch may be looking at the Polo's stable mate, the Fabia vRS. VW haven't shot themselves in the foot though, as the personalities of the two models are individual enough that there isn't too much of an overlap in terms of potential owners.

If you want to enjoy the classiest (notice how that word keeps popping up) small car on the market and revel in the quality of the interior then the Polo is for you. It is peerless in these terms in this sector. If you're a more keen and enthusiastic driver, the Fabia vRS has a decisive edge in terms of dynamics and driver involvement. Maybe not as clever as the Honda Jazz, and lacking the agility and fun of the Fabia and Fiesta, the VW offers something that it's very difficult to put a price on: a genuine air of quality.