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January sales might have started early on the high street, but anyone buying a small car could well wonder what’s happened to small prices. The cost of hatchbacks has crept so far upwards that a mid-range supermini now typically costs more than five-figures.

But Hyundai i20 buyers are set to be pleasantly surprised. Despite having exceptional levels of space, quality and safety – plus dynamics which can take on and beat the best from Europe and Japan – the little Hyundai is still priced at least £1,000 lower than mainstream rivals.

When it goes on sale in the new year, the entry level 1.2-litre Classic will start at just £8,195 for the three-door with a five door costing an extra £450. Despite the low price, all i20s are equipped with air-conditioning, six airbags, active head restraints, remote locking, electric front windows and an aux-in socket. In addition there is the reassurance of Hyundai’s Five Year Unlimited Mileage Warranty – unique in this class.

The mid-range Comfort model – expected to be the best seller and starting at £8,995 – adds 15-inch alloy wheels, body colour door mirrors and handles, electric rear windows, full iPod integration, steering wheel mounted audio controls, a trip computer and a six-speaker system.

There is plenty of new technology under the bonnet too. The i20 debuts with two new petrol and diesel engines, starting with an advanced 78PS 1.2-litre ‘Kappa’ petrol which is expected to be the range’s biggest seller. Its CO2 rating of just 124g/km is around 15g less than similarly-sized petrol engines from rivals and it returns 54.3 mpg on the combined cycle.

Next up in the range is a 1.4-litre, 100PS 1.4-litre petrol borrowed from the i30. In the i20 it returns 50.4mpg on the combined cycle and produces 133g/km – better that some rivals’ 1.0-litre engines!

Meeting the demand for low-emission, high economy diesel power, the i20’s all-new CRDi engines both have a 1.4-litre capacity and offer 75PS or 90PS. Emissions and fuel economy figures are exceptional – at just 116g/km and 64.2 mpg for the 75PS version and 118g/km and 62.8 mpg for the larger-wheeled 90PS model. This places both i20 diesels in band ‘B’ for VED, making a tax disc cost just £35/year. Furthermore, company car drivers will find they are taxed for benefit-in-kind at just 13% – offering significant savings for those wanting to downsize.

Five door models will go on sale January 15, with the first three-door i20s arriving in April. A full list of prices appears below:

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