Fiat claims its new Punto Evo is more competitive than rivals Ford Fiesta and Renault Clio with the same equipment.
The Punto Evo, which went on sale in January, starts at £10,995, rising to £15,295 for its top-specification model which includes sports seats, cruise control, sports suspension and 17-inch alloy wheels as standard.
In its incarnations so far, Punto has sold 700,000 units in the UK: this new model is expected to sell around 13-14,000 cars in 2010.
Customers normally fall between 18-35 years old, said marketing director Andrew Sproston.
To appeal to this target audience, marketing for Punto Evo focuses largely on new media including music and social networking website Myspace.
Available with a choice of five low emission, Euro V engines, all fitted with stop-start technology, the car comes in five different trim levels – Active, Dynamic, GP, Eleganza and Sporting.
Among the engine line-up is two power units featuring Fiat’s new MultiAir technology.
The full list includes: 1.4-litre 8-valve petrol, 1.4-litre 16-valve MultiAir petrol (105bhp and 135bhp) and 1.3-litre 16-valve MultiJet diesel (75bhp and 95bhp).
Standard equipment in the entry-level Active model includes ABS anti-lock brakes with EBD, driver, passenger and knee airbags, radio/CD/MP3 player, electric mirrors and Blue&Me infotainment.
Active will account for 40-45% of sales said Sproston, with Sporting also being popular.
Sproston expects the MultiAir 1.4-litre 105bhp will be the most sold engine.