It is tough for car manufacturers to profit from small cars. Margins are small, both for manufacturers and the dealers that supply them to customers.

The A-sector - often known as city cars - has seen many manufacturers pull out recently. Ford no longer sells the Ka+ in Europe, after just three years on sale.

The Vauxhall Viva and Adam are no longer on sale, and neither is the Renault Twingo. There is no Suzuki Celerio, although the cuter Ignis remains.

The big success story of this sector, the Fiat 500, remains after 13 years in production and limited changes, as well as the Panda, with which it shares a platform. However, Fiat has already suggested future replacements could increase in size.

Volkswagen Group's trio of contenders, the Seat Mii, Skoda Citigo and Volkswagen Up, have undergone changes, with only the latter available with a choice of petrol or electric version, and the first two becoming zero-emission models.

Another trio of cars wearing different skins, the Peugeot 108, Citroën C1 and Toyota Aygo, illustrate the benefits of pooling resources to maximise the returns. 

Hyundai's i10 has shared the same platform as the Kia Picanto, and previously the duo tended to appeal to slightly different customers in need of a small car. The Picanto, with a more conventional hatchback shape and cuter styling, was more in the mould of the Fiat 500, even though the first Picanto arrived three years before the Fiat.

The i10 targeted the people choosing the Fiat Panda - with more upright dimensions and height to offer a roomier interior. The latest i10, which has just gone on sale, is no longer the tall shopping trolley it used to be.

Lower and wider than before, the i10 has been transformed into a dynamic-looking city car, without perhaps the elegance of the Peugeot 108 or the attitude of the latest Picanto.

More than 10 years ago, the i10 was the cheapest car on sale in the UK that had air conditioning fitted as standard. Back then, when the government's scrappage scheme was in full swing, the on-the-road price was around £7,000.

The range now starts at almost double that, but, even adjusting for price inflation, it isn't that steep when you consider all the things available as standard.

The UK range starts with the SE, which, perhaps unusually for a small car, comes with a vast range of safety equipment. Autonomous emergency braking and
lane-keeping assistance are fitted to Hyundai's larger cars, and the new i10 is no exception.

Customers currently have a choice of a 67hp, three-cylinder, 1.0-litre engine or an 84hp, four-cylinder, 1.2-litre. Both come with a five-speed manual gearbox as standard, or an optional five-speed automatic.

We tried the automatic in the 1.2-litre version, and like many other small cars a conventional torque converter transmission would be expensive and thirsty. Hyundai has opted for a robotised manual transmission, which, while cheaper and theoretically no thirstier than the standard gearbox, feels hesitant on upshifts, giving the impression that you are losing momentum.