Kia is one of the manufacturing success stories of the decade. In 2000 it was on the brink of disappearing. Now part of the growing Hyundai empire, it outsells companies such as Seat, Saab, Mitsubishi and Volvo in the UK, and its success is underlined by its cheeky little town car the Picanto.

Launched in the summer of 2004, the Picanto was the first supermini designed by the South Korean company specifically to meet European tastes. Available with two petrol engines, a 1 litre producing 60bhp and a 1.1 litre with 64bhp, and three trim levels the Picanto undercut the competition by anything up to £2,000.

In addition to an attractive price tag the Picanto’s exterior styling turns heads. Bold headlamps, an upmarket grille and colour-coded bumpers on all but the base model give the car a stylish exterior. Slip inside and the theme continues. The large, clear dials are easy to read and Kia ensures that every available bit of space is freed for the occupants.

There is no shortage of headroom in either front or rear seats, but for smaller drivers the lack of a height-adjustable driver’s seat may come as a disappointment. Rear legroom is better than many will expect and the car’s five-door configuration makes rear access easy. However, maximising the cabin space eats into the boot capacity. At 157 litres it’s small even for a supermini (a Fiat Panda boasts 206 litres), but the split-fold rear seat, which can be folded flat, frees a useful 883 litres of luggage capacity.

The interior trim is functional rather than attractive but good in terms of durability. Although some of the materials may feel a little flimsy, time and usage have proven them to be hard wearing and few owners find much going wrong.

On the road, the Picanto performs like most superminis, happier bustling around city streets and B roads than stretching its legs on the motorway. Engine noise is well suppressed at tickover but gets noisy when pushed and despite a standard five-speed gearbox it revs hard at higher speeds.

For dedicated town motorists the optional four-speed auto, available on mid-range models, is an attractive option, easily justifying the £400 premium they command on the used car market.

But superminis are all about minimal running costs and here the Picanto plays its strongest hand. Both the 1 and 1.1 litre models will return about 45mpg in town driving and are theoretically capable of achieving about 55mpg in mixed motoring. Service intervals of 10,000 miles also translate, for most owners, into just one annual visit to the Kia dealer for servicing, and a three-year unlimited mileage warranty on new cars means you may be able to pick up a used model with warranty still to run.

All models come with a reasonable equipment list; the mid-range LX is great value with its electric windows front and rear, CD player, central locking and air-conditioning. Alternatively, fresh-air fiends may also be tempted by the Zipp! and Zipp+ models that Kia launched in 2006 and come with a full-length electric sunroof.

In summary, then, a secondhand Kia Picanto manages to achieve everything that a supermini sets out to do, combining decent packaging, low running costs and cute styling with a reasonable price tag. Kia, the company that nearly withdrew from the UK less than a decade ago, now looks set for a healthy future. Who knows where it will be in 10 years’ time?

Wheels Steel rims on all but top spec models. Check all examples for kerbing and scuffs from town driving

Bumpers Colour coded on all but entry level models. They can be prone to scuffs and scrapes

Stereo CD player comes as standard

Warranty Three-year/unlimited mileage warranty on all new cars means that most secondhand examples should still have some cover

Insurance Just group 2 for 1 litre model and group 3 for 1 litre models

Gearbox Five-speed manual is standard, four-speed auto is an option on mid-range models

Safety Twin front airbags standard but no option of side airbags

Residual values Cheap to buy when new, the Picanto’s popularity secondhand has ensured that it holds its value well

Servicing Once every 12 months or 10,000 miles, whichever is the sooner

Brakes It has disc brakes all round and the addition of antilock braking and electronic brakeforce distribution ensure the car is always easy to pull up smartly

Vital statistics

Model Kia Picanto 1.1 LX

Engine 1086cc, four cylinders

Power 64bhp @ 5500rpm

Transmission Five-speed manual

Fuel 54.3mpg (combined cycle)

Acceleration 0-62mph: 15.1sec

Top speed 96mph

The one to buy Kia Picanto 1.1 LX five-door manual 2005 05 with 20,000 miles. Pay £4,550 at a dealer or £4,000 privately

Values Mileage 5,000 10,000 20,000

2004 04
Trade £3,450 £3,350 £3,150
Retail £4,450 £4,350 £4,150

2005 05
Trade £3,900 £3,775 £3,550
Retail £4,895 £4,775 £4,550

2006 06
Trade £4,300 £4,175 £3,925
Retail £5,295 £5,175 £4,925

Or for similar money

2003 53 Citroën C2 1.1iSX 2005 05 Fiat Panda 1.2 Eleganza 2005 54 Daihatsu Sirion 1.0 S 2005 54 Nissan Micra 1.0E 2006 06 Chevrolet Matiz 1.0SE