A NEW small Citroen should create a stir among supermini watchers as the French company is renowned for its small car success. Last year the AX, the cheapest way into Citroen ownership, scored its best-ever sales figure of 27,756 with a combination of ultra-competitive pricing and clever marketing which makes the most of the 'special edition' concept. But from a fleet point of view the AX is seen largely as a retail car, despite the fact that as many as a quarter of the total are bought with corporate cash, with bodyshop, dealer demonstrators and courtesy cars forming a substantial part of that figure.

The arrival of the Saxo gives Citroen a more mainstream supermini, one which, it is hoped, will give the company a firmer foothold in business sales. It does not replace the AX, at least for the time-being, but slots between it and the ZX to give Citroen a two-car line up in a sector that accounts for 28% of all new car sales in Britain.

To succeed it must compete against formidable opposition, notably from the Ford Fiesta and Volkswagen Polo, widely acknowledged as the class benchmarks. The Saxo shares its floorpan with the recently facelifted Peugeot 106, but all panelwork is new, and the new Citroen is substantially bigger than the AX.

At launch, two engines are available - 1.1 and 1.4 eight-valve petrol - with a 1.5-litre diesel and 1.6 petrol arriving in the autumn together with a five-door bodyshell. The range will be topped at the same time by a 1.6-litre 16-valve 120bhp sports version. Pricing runs from 7350 pounds for the entry-level 1.1-litre LX to 9390 pounds for the 1.4-litre VSX, the model tested here. Three trim levels - LX, SX and VSX - fall into line with Citroen's existing naming structure.

Performance & economy

THE Saxo's 1.4-litre engine is orthodox in its eight-valve layout. Its output of 75bhp is average for the class, though it falls short of some 1.4-powered rivals including the new Fiesta 1.4 (90bhp) and Corsa 1.4 16-valve (90bhp). Nevertheless it's enough to give the Saxo a respectable turn of speed - a maximum of 109mph and 0-60mph in 11.9secs compares favourably with the opposition: a Polo 1.4 CL manages 100mph and 14secs, for example, while the new Fiesta 1.25 posts a maximum of 106mph and 0-60mph in 11.9secs. By contrast, the Vauxhall Corsa LS 1.4 is flat out at 9mph and records a 0-60mph time of 14secs.

The Saxo's engine isn't particularly smooth, though mid-range pull is strong - a typical feature of an eight-valve engine. So the Saxo feels nippy, and with a slick and well-chosen set of gears, it's a satisfyingly relaxed and easy drive.

Not quite so impressive is the Saxo's fuel economy, and it's here that the technological advantages of other cars' more efficient 16-valve layouts come into their own: the Saxo's touring figure of 38.2mpg falls almost 6mpg short of the Fiesta's 44mpg while the Nissan Micra 1.3 beats it by a clear 8mpg.

Ride, handling & brakes

SAXO is among the lighter cars in its class with a kerb weight of 840kg, yet despite this the small Citroen feels solid and safe on the road with a terrific ride and entertaining, sure-footed handling. Its ultimate ride smoothness isn't quite as impressive as the new Fiesta's, but there is less roll on cornering thanks to the standard front anti-roll bar across the range, and the Saxo's passive rear steer which lends sharpness to turn-in.

Such crisp responses are conducive to an entertaining driver's car, and the Saxo doesn't disappoint: with its gutsy mid-range performance and finely tuned chassis, it ranks among the best on driver appeal. The brakes are adequate rather than outstanding. Repeated stops for our action photography session brought about a slight increase in pedal travel, though stopping power wasn't diminished. With a little more bite, the brakes would match the Fiesta's for reassurance and power.

ABS is a hefty 585 pounds extra, but power steering isn't available even as an option at present - Citroen says an electro-hydraulic system will be available in the autumn, but even in top-line VSX trim as tested here it will still be a 375 pounds extra, matching the option price on Fiesta and Corsa.

On small cars, we feel power steering should be standard due to the cars' likely usage pattern: the Polo is the only supermini to break the class norm, with all models from CL upwards (plus 1.6L and LD) including power steering as standard.

Behind the wheel

THERE'S no adjustment on the steering wheel even in the top of the range Saxo, and tall drivers will find their knees contacting the bottom of the wheel rim as a result. And though there's plenty of rearward travel on the driver's seat, the sunroof encroaches on headroom and gives the Saxo a somewhat cramped feel inside. It's no match, for example, for the Fiat Punto which manages to combine more interior space into a cleverly designed package that's barely bigger than the Citroen.

But the most telling aspect of the Saxo's design is that it is no more spacious than the AX despite its bigger overall dimensions. The seats, however, are comfortable, though rear leg room with the front seats pushed back is minimal. Compared with the new Fiesta, the Saxo's dash looks dated and is finished in hard plastic that grates compared with the soft-touch feel of the Polo and Fiesta. There are sensible detail touches, though, such as the central air vent which can be raised from its flush-fit position to give maximum air circulation and best direction. In VSX trim, electric mirror adjustment is standard as is a good quality RDS radio/cassette.

Equipment & value

IN VSX form at, 9390 pounds, the Saxo undercuts most direct rivals by a substantial margin, many offering less equipment into the bargain. The £10,730 pound Fiesta 1.25 Ghia lacks electric door mirrors and a high level brake light but adds power steering to its standard specification while the 1.6-litre Polo GL includes power steering but costs over 1500 pound more. But power steering won't be available on the Saxo until autumn.

With prices starting at just 7350 pounds (roughly the same as an AX Memphis 5dr), the Saxo range is good value for money and offers more than the AX in the way of build quality, safety and equipment. And as an added incentive until the end of August, Saxo buyers will not pay Citroen's 'on the road' charges, including delivery, number plates and six months' road fund licence. This amounts to a saving of £557 and applies to ZX as well. Adding on the road charges to competitor models widens the price difference even further: the Polo 1.0 L, for example costs 7760 pounds on the road compared with the Saxo 1.1i LX's 7350 pounds.

Safety & security

CITROEN'S acclaimed keypad immobiliser, remote central locking, coded stereo and an alarm as standard on the VSX sets the Saxo off on the right security footing. It's backed up by Citroen's unique 'ring of steel' reinforcing rollover hoop behind the front seats, a driver airbag (with passenger's optional at 190 pounds) side impact protection, belt grabbers and pretensioners and a high-level brake light, giving the Saxo an impressive standard remit. ABS is a 585 pounds option.

Such standard specification is unusual on a supermini; the Polo and Fiesta do offer similar potential but only with a visit to the options list.

Interior & accommodation

DESPITE its larger dimensions than the AX, Saxo is no more spacious inside. That said, it's as roomy as a Peugeot 106 or Fiesta so it's no worse than the class norm. Apart from our reservations over the quality of some trim items, particularly the dash and centre console, the Saxo feels well put together. There were no creaks or groans during our time with the car and the seats are generously sized and comfortable, though startlingly upholstered in colourful and jazzy fabrics.

The boot is large for the class at 0.28cu m and uncluttered thanks to the compact torsion bar rear suspension which uses horizontal dampers to minimise intrusion.

Fit & finish

SAXO is the antithesis of the AX, which was always renowned for its flimsy construction and finish. Forget tinny door panels and thin paint, poor shut lines and cheap and cheerful interior quality, Saxo can parallel the Polo on build quality. From the deep lustre of the eyecatching metallic blue paint of our test car to the solid thunk of the doors closing to the even panel gaps and pleasingly integrated design features, Saxo is a car that impresses with its quality. We'd say it's one of the best Citroens to date and a manifold improvement over the AX.

But there are some niggles: the dash we've mentioned, and we feel the boot should be trimmed in something more salubrious than black plastic-covered matting. Some of the switchgear, such as the electric window switches and their housing, feels flimsy too, but it's more than countered by the smart smoked plastic rear lamp lenses, substantial body rubbing strips and smoothly integrated semi-painted bumpers. Overall, the Saxo comes across as a neat and impressive effort which, at such a competitive price, is a tempting proposition.

Refinement

There's no doubt the Saxo makes an impression with its mature ride and handling characteristics, and in this sense it feels a much bigger car. It's compounded by low levels of wind noise from around the A-pillars and notably hushed road noise intrusion thanks to Citroen's 'acoustically engineered floorpan', making the Saxo a surprisingly relaxed motorway cruiser. Generally that impression persists around town, the engine only giving the game away under acceleration when it can become boomy and obtrusive as revs rise.