Citroen C4 1.6 e-HDi (second generation model)

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Citroën's new Golf-sized C4 tells us a lot about the French car-maker is up to and where it is going. Earlier this year, the company hatched a plan to introduce a second, slightly pricier, parallel range of cars to accompany its mainstream "C" badged models. The new line took over a famous badge from Citroën's past; DS. The idea wasn't to sell a straight retro car based on the famous DS's shape or copy any of its features directly, rather, it was to produce a range of cars that showed something of the dash and style of some of Citroën's past models, leaving the "C" range to appeal more directly to mainstream buyers. The DSs are still badged as Citroëns.

This approach was initially regarded sceptically. Conventional motor industry wisdom says that you need to invest lots of money in buying or building up a separate prestige brand if you want to charge a premium over mass-market models, but so far the DS concept has been a success.

For the first DS model, the DS3, Citroën took the sound basis of the second-generation C3 and turned it into something a lot zingier. Even though the DS3 shares some of its exterior panels with its mainstream sister, it looks completely different, thanks, in particular, to a distinctive "shark's fin" B pillar and a contrasting roof panel available with a wide range of designs. DS3 buyers were also provided with an unusual degree of choice over colours and trims. The result was a car that pulled off the remarkable feat of making the previously unassailable BMW Mini look a bit old and tired.

The success of the DS3 now conditions expectations about the second-generation C4. While the C4 is an interesting new model in its own right, there is the temptation to see it merely as the curtain-raiser for the forthcoming DS4, even though the C4 should be the bigger seller.

And a first taste of the new C4 also suggests that the introduction of the DS line has probably freed Citroën to nudge its mainstream C range in a slightly more conservative and practical direction, safe in the knowledge that younger or more more style-conscious customers who might otherwise be put off by such a shift are being well catered for by the DS models. So the new C4 is available only as a five-door hatchback, and there is no replacement for the previous coupé-style three-door variant.

A couple of quirky Citroënesque features such as a "flying saucer" instrument pod that sat atop the dashboard, and a steering wheel boss that remained in a fixed position even as the rim was turned, have, sadly, also been lost. But buyers with a taste for that sort of thing will probably find more than enough appealingly Citroëny detail in the DS4, while the three-door DS3 is a pretty good alternative to the old C4 coupé, even though it's a bit smaller.

But if the C4 has lost a few nice touches in the process of being reborn, there are plenty of areas in which there have been significant gains. One obvious improvement is in the quality of the C4's interior trim.

The outgoing model was already rather better in this respect than older Citroën models but the new one reflects in full the (probably somewhat under-reported) big advances the French manufacturer has been making in this area over the last few years. The quality of the C4's plastics and other materials, as well as their fit and finish, probably bear comparison with those of any of the alternatives – including the products of the German manufacturers.

Particular care has been taken to provide easy access to the new C4, which provides a lot of space both for occupants and their luggage. That partly reflects research which shows, according to Citroën, that the average age for buyers of Golf-class cars is quite high, at 57.

But these shifts are fairly subtle, and while the new C4 is more conservative in character than its predecessor, it's very far from being a reborn pipe-and-slippers Rover 45 for the twenty-first century.

It's still quite French and quite modern – and there are still more curves than straight lines, both on the inside and on the outside. The beautifully lit instruments are very easy on the eye, and, should you ever tire of their appearance, it is possible to alter their colour scheme.

Similarly, you can change the sound of the indicators, or of the various warnings bells and buzzers. The C4 is also available with a blind-spot warning system and a host of other safety features that help it to achieve a 5-star Euro-NCAP rating.

The C4's behaviour out on the road also reflects this rather mature, comfortable, even luxurious character. Ride comfort is good, and road noise levels, in particular, are low. Citroën says that the new car's soundproofing has been benchmarked against larger, more expensive models, a claim that is entirely plausible.

I drove C4s with three different engine/gearbox configurations. The first of these, the turbocharged 155 horsepower1.6-litre THP petrol engine paired with Peugeot/Citroën's EGS "automated manual" transmission, was the least successful. EGS is the French group's simpler, less costly, single-clutch alternative to Volkswagen's dual-clutch DSG system.

Automated manuals offer a number of advantages. They have a self-shifting "automatic" mode but are more efficient than a conventional automatic and may be able to judge gear changes better from the point of view of performance and economy than the human operator of a conventional manual gearbox. But where DSG transmissions and their dual-clutch imitators impress with very quick and crisp changes, Peugeot/Citroën's alternative takes its time. The pairing of the fast THP engine with the slow EGS gearbox is rather incongruous and I suspect that in this car as in others where the THP has already proved itself an effective and characterful performer, it would be better to go with a straight manual 'box.

The second C4 I tried also had the EGS transmission but the experience was more positive. In this case, it was fitted to the special economy version of the C4, the e-HDi. The e-HDi combines several technical features aimed at reducing fuel consumption. It is fitted with a 1.6 litre diesel engine, low rolling resistance Michelin Energy Saver tyres, the EGS gearbox and a fancy stop-start system combined with regenerative braking and a so-called second-generation reversible alternator, features which turn the C4 into what the industry calls a micro-hybrid. Here, the main shortcoming of EGS – its slow change – is ameliorated by the higher torque of the e-HDi's 110 horsepower diesel engine, and the more relaxed driving style the economy model encourages, while its main advantage – shift patterns that can be programmed in the interests of fuel economy – comes to the fore.

Overall, the e-HDi offers a pleasant way of achieving good fuel economy and low CO2 emissions - 109g/km on official government tests, with Citroën promising 99g/km on future variants.

The final C4 was a 2-litre diesel with 150 horsepower and a manual gearbox, a very pleasant combination, probably the best of the lot. Other options, when the full range is on sale, will include a 90 horsepower 1.6-litre diesel (which will also be available in e-HDI form), and non-turbocharged 1.4-litre and 1.6-litre petrol engines.

For its mainstream audience the new C4 does the job – and, broaqdly speaking, it does it well. For those who want something a bit more adventurous, if the DS3 is anything to go by, the forthcoming DS4 is unlikely to disappoint.

Citroen C4 1.6 e-HDi (second generation model)

On sale: arrives in the UK in early 2011

Price: range will start at about £16,000, 1.6 e-HDi EGS with VTR+ trim is likely to cost £19,800 (indicative prices reflect expected VAT increase to 20%)

Top speed: 118 mph (1.6 e-HDi)

Acceleration: 0-100km/h (62mph) in 11.2 seconds (1.6 e-HDi)

Fuel consumption: 67.3mpg (combined cycle, 1.6 e-HDi)

CO2 emissions: 109g/km (1.6 e-HDi), later models likely to achieve 99g/km

Rivals: Ford Focus, Vauxhall Astra, Volkswagen Golf

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