First drive: Toyota iQ - On the road

The only engine at launch is a 1.0-litre petrol but, in such a small car, its 67bhp output is adequate.

The iQ feels sprightly at town pace and can hold its own when cruising on faster roads, although it does take a long time to get up to speed.

Buyers can choose between a five-speed manual gearbox and a CVT auto, while a 1.33-litre petrol unit will join the line-up in mid-2009.

Wind noise is kept to a minimum, but there’s some road noise over coarse surfaces and the engine is vocal when pushed.

Toyota has tried to make the optional CVT gearbox feel more like a conventional auto, so it picks up revs gradually instead of immediately shifting to the point where peak power arrives. However, it still thrashes too much when you put your foot down.

The iQ is most at home in the city, where you can make use of its incredibly tight turning circle, but it also feels a lot more planted at motorway speeds than its rival, the Smart Fortwo.

The ride generally seems quite supple, but you have to put up with a lot of body lean through bends and the steering doesn’t provide much feedback.