Fiat Panda now greener than ever

As a result of advances in engine technology, Fiat has replaced the smallest engine in the range, the 1.1-litre unit, with a 1.2-litre petrol engine.

The new engine develops 69bhp but offers 113g/km of CO2 emissions and fuel economy upwards of 57mpg.

The result is the greenest petrol Fiat Panda ever but it also delivers a 0-62mph time of 13.4 seconds and a top speed of 101mph.

The diesel engines have also been updated, with the new 1.3-litre MultiJet diesel delivers CO2 emissions of 109g/km and fuel economy of 67.3mpg.

This is matched to a top speed of 103mph and a 0-62mph sprint time of 13.1 seconds, making it slightly quicker than the petrol alternative.

"The Fiat Panda is one of the motor industry’s great success stories," says Elena Bernardelli, marketing director, Fiat Group Automobiles UK and Ireland. "And we plan to continue that with this new range of cars."

The Fiat Panda follows Fiat’s other small car, the 500, in gaining new, more frugal engines in recent months. However, the popular Panda sits below the price of its rival at just £8,445 for entry-level models.

However, for a limited time, the entry-level price is as low as £6,645 for petrol models in the Active trim level and £7,245 in the higher-spec MyLife version.

Dynamic models, also available with the petrol engine, start from £9,895 and include alloy wheels, roof bars, air conditioning and an MP3 player.

At the top of the range, the Dynamic trim is also offered with the 1.3-litre MultiJet engine – the only model to be offered with the powerplant – from £12,285.