Over the last few years we've charted something of a reinvention of the Mitsubishi brand. At the core of it has been the cult hero that is the Lancer Evolution series of saloons. Elsewhere we've enjoyed the Grandis, Outlander and the stalwart that is the Shogun Sport. Talented niche cars all and products that show the brand's commitment to continuous improvement. These aren't big sellers though and in order to fund such niche models it is imperative to sell volumes.

Developing cars isn't a cheap business and Mitsubishi chose to mate their prowess for engineering small cars with the talents of DaimlerChrysler subsidiary smart to co-develop their new baby, the Colt. Both ranges have now filled out to include range topping performance versions. smart offers a BRABUS version of their forfour we've already driven and Mitsubishi now has the CZT to cap the Colt range. As with the rest of the range the Mitsubishi is much cheaper than the smart equivalent; is it at the price of ability?

The Mitsubishi Colt is a small car and looks very much like a mini MPV with tall slab sides. Saying that, the corporate nose gives it some presence with sculpted intakes and a deep front spoiler. The mesh grille adds some badly needed intent and the alloys give it the bling factor you'd expect on a hot hatch, but overall the CZT is a fairly subtle hot hatch and the better for it. Nobody would suspect that this apparent shopping car is as potent as it is.

Behind the beak-like grille is a turbocharged version of the normal Colt's 1.5-litre four pot pushing out 147bhp and the similar figure of 155lb.ft of torque. These two figures are sufficient to punt the CZT along with some considerable aplomb. A 0-60mph sprint in just over seven seconds is serious sprinting capability, the fact it sustains that surge up to 100mph in 22 seconds is fairly indecent for a 1.5-litre and the near 130mph maximum is more than adequate for the UK.

We've seen time and again in the past that such pace can be wasted if the chassis isn't there to harness the power. Luckily that isn't repeated with the Colt CZT. Shod with 205/45 Goodyear Eagle F1 tyres on a 16-inch rim the Colt superficially at least gets off to a good start. The wheel at each corner stance maximizes the footprint of what is a fairly small car. Around town the ride is on the firm side but is never crashy and the suspension is well damped hinting at its ability on more challenging roads.

On the sinuous winding stretches of tarmac on the deserted Yorkshire moors the CZT is in its element. Here, its diminutive frame and low weight pay dividends in spades and the core abilities shine through. The small turbocharged engine soaks up punishment and loves to rev providing all the power needed to eke into the chassis' talents.

Tight bends show the strength and resilience of the brakes that assuredly rein in the lightweight again and again. Sharp corners also show the Colt CZT's dogged resistance to understeer and sound traction away from the apex. There is a lack of torque steer but it's at the price of steering feel as the work needed to damp out the unwanted writhing of the wheel is against that which is at the heart of good communication. On more open roads the CZT displays composure and neutrality in the more sweeping bends and never feels breathless or slow on the straights between them. All the while the body control is good over the humps, crests and dips that my favourite roads always include.

In terms of a dynamic package then the Colt CZT is very good. But in contrast to the Ying of the fun you can have is the Yang of the environment you're in as you enjoy it. The standard sports seats are comfortable and supportive enough and the Colt has something of a tardis of an interior, aided by the clever sliding rear seat. The quality and appearance of the interior is an issue though. The plastic mouldings look cheap and don't feel much better and the switchgear is all rather clicky.

On the plus side, the three-spoke steering wheel is nice and the integrated controls on its rear work well. The sporty white-faced dials look good and little features such as the three-flashes-for-one-nudge indicators are welcome inclusions. Equipment levels are good as well with air conditioning, CD player and electric everything included. The actual architecture is left wanting though and the central column that illuminates at night is a definite acquired taste. It is this aspect more than any other that explains the price differentiation between the Colt and its smart stable mate.

We had hoped for something of a mini Evo in the Colt CZT and some of the family resemblances are striking: a capable chassis, plenty of grunt, lots of fun and... a woeful interior. However, it doesn't enjoy the Lancer's position of having very few direct rivals; the market is bulging at the seams with sporty small hatches. Looking around at rivals none truly eclipse the abilities of the CZT, some however offer a more complete package and nail the Colt on interior quality. Think MINI Cooper and Ford SportKa.

If you're after a pocket rocket the CZT should be on your short list and if you can overlook the deficient interior then it will be near the top. Should Mitsubishi take it upon itself to address some of the shortcomings during a mid life facelift the Colt CZT has enough talent to set the pace in this class and really worry some of the established small hatch stars.