Caterham has launched an all-new version of the Seven, the CSR, which is powered by a Cosworth developed 2.3-litre Ford Duratec engine.

The all-alloy, four-cylinder unit comes in two variants – a Euro IV compliant 200bhp engine, designed for the export market, and a tuned high output 260bhp version, which will no doubt attract UK buyers.

The Seven CSR uses an entirely redesigned new suspension system which has a racetrack honed, double wishbone fully independent rear linkage to increase grip and stability.

At the front, a Formula One style push-rod operated inboard unit will improve the aerodynamic performance with a 50mm increase in the front wheel track aiding high speed cornering.

Aerodynamics have also been improved with re-profiled cycle wings, which are mounted even closer to the tyre to reduce drag, and a new larger nose cone which houses a larger radiator.

“Caterham has to remain at the pinnacle of its chosen niche – lightweight, high performance sports cars. We feel we’ve taken the next giant stride forward with the Seven CSR,” says Simon Nearn, managing director of Caterham Cars, which produced around 600 cars last year.

Prices for the CSR, which is on sale now, start at £27,450 for the 200bhp version and from £33,950 for the 260bhp.