You may not remember the last super-mini from Kia; it was a previous generation Mazda 121 re-badged as the Kia Pride. Believe me when I tell you that its owners were more proud of the algae living in their ponds. The Pride was not a good car. Kia still makes value for money cars, but no longer relies on Japanese manufacturers' cast offs. The Picanto reviewed here is Kia's first decent stab at the highly competitive super-mini market. The only thing it shares with the Pride is the first letter in its name.

The Picanto's styling is a good starting point for Kia. It is modern, with mini-MPV proportions, and distinctive, especially at the front. Its puppy dog face may put off some buyers, but it certainly stands up well to comparison with Fiat's Panda. The Panda may have the edge in terms of street cred, with its chic yet utilitarian lines, but the Picanto looks just as fresh, and draws inquisitive glances from passers by. For the moment, the Picanto is available in five-door format only; indeed Kia's marketing plays on this, asking why you would want a car with three doors when you could have one with five for the same price. They certainly add to the car's practicality, and will be welcome to parents of young children in particular. The Picanto has a useful 70mm more in its wheelbase than the Panda it competes with. Saying that, there is no direct comparison in the Fiat range for the base model tested here, which is better equipped than the basic 1.1-litre Panda, but nearly £1,000 cheaper. Indeed, the Daewoo Matiz (soon to be re-badged Chevrolet) is perhaps a closer rival, though the Kia is the more desirable car.

There is not much to choose between the Matiz and the Picanto when it comes to quality of the cabin. The Kia is a full 100mm wider than the Daewoo though. As well as giving the Kia better looks, it provides a significant advantage in terms of elbowroom. In general, the Picanto feels more spacious; it also has more useful cubbyholes for all your (and your kids') bits and pieces. It is easy to get comfortable in the driver's seat of the Picanto, the switchgear is sensibly laid out and the view out of the car is clear, though the result of a sharply sloping nose is your inability to see the very front of the car. For a fiver under £5,500 (on the road), the Picanto 1.0 GS is amazingly well equipped. It has two airbags, a stereo, electric windows, disc brakes all-round and ABS with EBD. Sadly, you get nothing in this life for free, and the price in the Picanto is less money spent on the materials used in the cockpit. The plastics are not quite as offensive as those in a Daewoo Kalos, but they could be better. I personally found the steering wheel rim to be too slippery, especially when cold. A buyer in the showroom will notice small details such as this.

Once on the move, you will appreciate that the Kia is well screwed together, with no annoying squeaks or rattles. The controls are quite slick, especially the gearbox and clutch. The brakes inspire confidence, with a firm pedal full of feel. Despite the fact that the Kia Picanto has been designed with urban living in mind, it copes admirably with motorway use. Its damping is well judged, soaking up ruts and bumps with ease. Unlike many city cars the Picanto proved to have excellent stability and resistance to crosswinds. The lack of performance will convince you not to use the Kia for a lot of motorway miles. Understandably, the meagre 60bhp at your disposal struggles to produce anything you might recognise as acceleration. This in itself is not a problem for the target buyer, but to keep up with most traffic often requires a lower gear or a wide open throttle, which we found to have a negative impact on the fuel consumption. Admittedly our test car had particularly low mileage.

Kia plans to sell 10,000 Picantos in the UK in 2005. Not only am I struggling to think of a better rival in the fight for city car honours, the Picanto has a mighty finishing move: three years, unlimited mileage warranty, three years roadside assistance, three years paintwork warranty and six years anti-perforation warranty. I suspect that there will be more than 10,000 proud owners in the new Picanto next year.