The Polo nameplate has been on the scene since 1975. On its 30th anniversary, VW launched a new generation of the super-mini, set to fend off the increasing list of competitors considering themselves good enough to rival the Polo at the top end of the segment. We spent a day driving several variants as a first look see.

At days like this I find that a good strategy to employ is to start with the cheapest car available and work up. There were no E models at the launch, so that meant taking a 1.2 S 3-door out to explore VW's chosen test route. This model retails at £9,250 on-the-road, and that price includes ABS with Brake Assist, central locking, an engine immobiliser, two airbags up front, electric front windows, air conditioning and front fog lights. Surprisingly, 14-inch alloy wheels are also standard, as are electrically adjusted door mirrors. Not a bad tally for the price, and it is no wonder VW expects the S to be the biggest selling trim level.

It must be said that metallic colours better suit the new shape of the Polo, and so do the bigger alloy wheels. Our test car came with 'Winter Red' pearl effect paint, and it failed to flatter the new car's looks. You'd be forgiven for thinking that the new Polo doesn't look very different to the outgoing car. The most significant changes have been at the front of the Polo, with a bold new grille echoing the styling of the new Passat, lending the car a more confident air. The headlights mimic the Passat's too, and the side indicators have been rehoused into the door mirrors. At the rear, the lights have been restyled to fit in with the latest VW design language. The overall effect is of a more modern car. It is worth noting that the Polo is now longer than the very first Golf was, which conveniently makes way for the forthcoming VW Fox supermini.

Inside, the bigger car impression continues thanks to ample space and high quality. Indeed, jumping into a Golf later in the day it struck me how much airier the Polo's cabin is in comparison to its bigger sibling's. A large family would require more space, but the Polo can actually carry four adults easily and comfortably. One of the Polo's selling points is its quality and this was apparent before I even turned the ignition key. The switchgear and materials are in the same league as the Golf now. Rivals such as the Ford Fiesta have raised the game recently so VW can't rest on its laurels.

What of the driving experience? Well, the 3-cylinder 1.2-litre engine is a little gem with bags of character and a lovely usable torquey nature. Some buyers may be put off by the unusual offbeat engine note, though three cylinders always remind me of early Porsche 911s. Next up I tried a 1.4-litre petrol model with 75PS (nearly 75bhp), which is a 'proper' engine with four cylinders. Granted, this engine gives the car a much more grown up feel and is commendably refined, but it is devoid of character, and doesn't give up its claimed output as willingly as the eager 1.2 does. It also uses more fuel, though this engine is still quite economical.

If fuel economy is one of your priorities chances are you will be considering one of the diesel options. There are four different diesel engine variants, two of which are based on the excellent 3-cylinder 1.4-litre unit offering 70PS and 80PS outputs. We tried the 100PS 1.9-litre engine fitted in a 5-door Sport model. This engine really suits the Polo and returns excellent fuel economy at the same time as pushing the Polo along with real urge. There is also a 130PS version, which should be classed as a diesel hot hatch.

The 130PS diesel Polo will be the most sporty model in the range until later in 2005 when the Polo GTi is revealed, possibly at the Frankfurt Motor Show. That car should receive a unique grille a la Golf GTi, along with 150bhp fed through a six-speed gearbox to the front wheels. With such a wide range covering bargain basement to junior hot hatch, the Polo seems to do a bit of everything. Its obvious quality and big car feel will steal customers from other supermini manufacturers, and may even step on the heels of the entry-level Golfs.