Fiat has launched a new ECO version of its Panda in the UK with carbon dioxide levels of 119g/km.

Customers can choose from an Active ECO or Dynamic ECO.

The Panda Active ECO is powered by a 1.1-litre 54bhp petrol engine while the Panda Dynamic ECO’s 60bhp 1.2-litre petrol engine. Both models return 56.5mpg.

The Active ECO’s standard equipment includes: immobiliser, driver and passenger airbag, ABS anti-lock braking with EBD, electric power steering, Follow Me Home headlights and electric front windows; while the Dynamic ECO also gets remote central locking, colour coded bumpers and a CD/MP3 player.

These two newcomers cost £100 more than the standard versions on which they are based.

That means the Panda Active ECO costs £7,105 and the Panda Dynamic ECO £7,705. However, due to a reduction of the VED tax band from C to B, there is a saving of £85 for owners.