It is rare for a car to get to the end of its life still leading the pack, but that’s what the Ford Focus has done. It has been Britain’s top seller since soon after its launch in 1998 and is recognised universally as the best-handling car in the family hatchback class.

So the Focus was always going to be a difficult act to follow. Oh, they could make it a bit bigger and improve the furnishings, but could Ford make a step forward in the way the Focus drives? I was doubtful.

I shouldn’t have been. Having driven several versions of the new Focus on a test track and on the winding roads of Tuscany, I can report that the best has got better. Rivals had begun to catch up; now the Focus has moved ahead again.

The improvements are subtle. The emphasis has been on improving the car’s ride comfort and refinement without losing its famed agility.

The Focus’s cornering precision comes from accurate steering and relatively hard suspension. A longer and wider stance, larger shock absorbers and some fine tuning have made the new car more supple — and quieter — over the bumps. The new car’s power steering is speed-sensitive so that it has a weightier, more stable feel on the motorway but is light to park.

In all, the Focus remains fun to drive but is more refined and feels more solid. It has a stiffer bodyshell, thicker window glass and with all the safety equipment weighs 200lb more than its predecessor. Consequently there is a new range of engines, with only the entry-level 1.4 litre and the 1.6 litre 99bhp petrol engine being carried over from the old car.

Supplementing them is a new Ti-VCT version of the 1.6 with variable valve timing, which is more powerful (115bhp) and more economical. Then there is a 143bhp 2 litre petrol engine, which comes from the Mondeo and is sweeter than its predecessor in the Focus. The 1.6 and 2 litre diesels come from Peugeot. These TDCi engines are already offered in the C-Max MPV but the 2 litre is quieter in the new hatchback. The 134bhp 2 litre diesel is the only version to get a six rather than five-speed manual gearbox; Ford’s rivals offer six gears more widely.

The C-Max previewed the new Focus range, being the first Ford to be built on what it calls “C1 architecture” shared with the Mazda3 and Volvo S40 and V50. It also set the new style: smoothly rounded where the old Focus had hard edges. The latest models are nearly 7in longer and 2in wider than the original Focus but have lost its distinctive style. After a period of more radical design, Ford has fallen back to conservatism. That’s a pity and, given the success of the original Focus, it may be a mistake.

I have no such doubts about the new interior, although that is also more conventional. The Volkswagen Golf and the latest Vauxhall Astra have raised the standard for fittings and finish inside family hatchbacks. The Focus fascia is now a soft-feel plastic moulding and the layout of instruments and controls is neater. Ford has introduced some lighter trim colours, including blue, as an alternative to the ubiquitous black for the upper surfaces. Safety equipment available includes side curtain airbags as well as front and side airbags.

The Focus offers a series of optional features that have migrated from bigger and more expensive cars, such as a navigation system with a large colour display screen, electrically adjustable pedals, adaptive (swivelling) headlamps, keyless locking, voice controls and Bluetooth mobile phone connection.

There is more shoulder room in the front and a little more space for rear passengers. The extreme slope of the three-door’s “fastback” roof is an illusion — it has the same amount of rear seat space as the five-door.

Three and five-door versions go on sale in Britain from January 1, and prices have changed little from those of the current range. A five-door estate will follow shortly afterwards and a four-door saloon later in 2005. The new Focus is likely to take up where the old left off — at the top of the sales charts.