The totally new Daihatsu Terios follows on from last year's new Sirion in offering a strong European flavour to its styling, packaging and dynamics.

As a result Daihatsu aims to boost European sales from the 32,000 of 2003 to 80,000 in 2008.

As so confident is parent company, Toyota of the new Terios's appeal that it plans to sell 1,500 per month of its version in Japan, badged 'Rush'.

The new Terios UK line-up will comprise the Terios 1.5 available in Black Mica only at £12,995 on-the-road, the higher-spec 1.5X at £14,295 OTR - expected to be the best-seller - and the 1.5SE automatic at £14,995 OTR.

Arguably the most stylish small 4x4 on the market, the totally new Terios has a dynamic, fun-to-drive appearance with strong off-road styling cues yet short front and rear overhangs, a long wheelbase and especially wide tracks an body width.

Its roomy, four-door, five-seat body succeeds in being compact yet practical, avoiding the bulk, high fuel consumption and negative image of some 4x4s.

Designed to appeal to young families and older people seeking the traditional 4x4 qualities of visibility, bad-weather traction and versatility, the new Terios also offers small car running costs and manoeuvrability.

Its turning circle is a tight 9.8 metres (kerb-to-kerb) for the S and SE and a still hatchback-like ten meters for the bigger tyred SX while the SX body length is between that of the new Renault Clio and larger Megane.

Compared to the previous model, the new Terios 1.5SX is 230mm longer at 4,975 and a significant 190 mm wider at 1,745mm. It is 45mm higher but purely because of its standard roof rails. The entry-level S model - which lacks roof rails - is actually 5mm lower than before.

The versatile interior offers mid-sized hatchback passenger space with a clever split fold-and-tumble rear seat which liberates a 1,290 mm maximum floor length - long enough to take a mountain bike.

Its standard Dynamic Variable Valve Timing (DVVT) enhances low speed pulling power and high rev throttle response by maximising combustion efficiently. It also boosts fuel economy and lowers exhaust emissions.

Top speed for manual models is almost 100mph and over 93mph for the automatic, while the Terios 1.5S manual records 40.4mpg on the Extra Urban Cycle and the Terios 1.5SE automatic not far behind at 39.8mpg.

In fact, the Terios 1.5S has the best CO2 reading of any four-door 4x4 - diesel included - and comfortably beats rivals such as the Suzuki Grand Vitara, Mitsubishi Shogun Pinin and Honda HR-V.

Meanwhile, all new Terios models have a full time 4WD system with a fixed 50/50 front to rear torque-split and centre differential which eliminates axle wind-up - the phenomenon of the steering becoming increasingly heavy on full-lock.

Because of this 50/50 toque split, high-speed stability and slippery surface traction is greatly enhanced compared to most rivals. These models are usually rear-wheel drive with selectable 4WD or effectively front wheel-drive, only calling on 4WD when sensors detect wheelspin.

The new Terios has outstanding safety measures with in-house tests giving results equal to a Euro NCAP four-star occupant protection and three star pedestrian protection.

Both driver, passenger and side airbags are fitted and the standard four-channel anti-lock brakes (ABS) also feature electronic brakeforce distribution (EBD) which maximises stopping power and minimises skidding.

Every new Terios model has an outstanding equipment tally with the entry-level Terios 1.5S featuring air-conditioning, power-steering, ABS with EBD, full-time four-wheel drive with centre diff-lock, driver, passenger and side airbags, three rear-seat three-point seatbelts, radio/CD player, four electric windows and reverse parking sensors.

Expected to be the best-seller, the Terios 1.5 SX adds, for example, alloy wheels with 235/60R tyres, two-tone wheelarch extensions and side-skirts, roof rails, multi-information display, front fog-lamps, smoked 'privacy glass' for the rear side doors and rear window, leather steering wheel, electric windscreen de-icer and door mirrors and various AC sockets and load-restraint ties.

The automatic transmission-only Terios 1.5SE has a similar equipment level to the SX but features a different design of alloy wheel with 215/65 tyres and has colour-keyed side skirts.

Like all Daihatsus, the new Terios will enjoy the protection of a three-year unlimited mileage warranty with roadside assistance plus an eight-year anti-perforation warranty.