Here’s how we used to understand small car categorisation and the difference between Fiesta-sized superminis and their smaller, cheaper citycar counterparts.

You paid extra for a supermini because it was slightly bigger, better finished and more stylish with a more refined engine that made longer journeys possible.

So where does that kind of thinking leave us with a product like this, the third generation Kia Picanto?

It competes with models we’d see as citycars, yet boasts the interior space a supposedly bigger Fiesta or Corsa had until quite recently.

It’s very nicely built and acceptably stylish. And yes, it’s quite at home attempting longer journeys. Here is the citycar, all grown-up.

On paper, a pretty effective route to creating a class-leading contender. Let’s see if it’s worked.

Underpinning this Picanto’s quicker, more responsive steering is a range of highly-efficient, small-capacity petrol engines.

Three units will be available to buyers. The 1.0-litre 66bhp and 1.25-litre 83bhp naturally-aspirated multi-point injection (MPI) engines have been carried over from the previous model, with a range of enhancements to improve efficiency and driveability.

More interesting is the news that at the top of the range, Kia is introducing the pokier and more efficient 1.0-litre T-GDI (turbocharged gasoline direct injection) 99bhp power unit borrowed from the larger Rio supermini.

All engines are paired with a five-speed manual transmission, delivering power to the front wheels. The 1.25-litre MPI engine is also available with a four-speed automatic transmission.

On the move, refinement is much improved thanks to a range of modifications designed to isolate the cabin from vibrations and noise from the road, wind and the engine.The result is a car that Kia says offers the quietest cabin of any A-segment model, both at idle and at a steady cruise.

As for handling, well modifications to the suspension are said to deliver greater ride stability and quicker, more enjoyable dynamic responses.

The Picanto’s revised dimensions also enable the pitch centre of the car to be placed further towards the rear, helping to naturally reduce ‘nose dive’ under braking without firming up the suspension and potentially compromising ride comfort.

This third generation Picanto has a more assertive stance, with bolder body lines. It’s bigger too, with a 15mm wheelbase increase, though this MK3 model is no longer than the previous version.

This time round, there’s a single, five-door bodystyle and strong, straight lines run horizontally across the front of the car, emphasising the ‘tiger-nose’ grille and angular wrap-around headlights.

Vertical lines that encompass the side intakes and lower grille enhance the Picanto’s more confident new ‘face’. The model also adopts Kia’s wide C-pillar as a design motif, which stands more upright than that of the previous car.

Inside, Kia designers have created a more modern, refined cabin, with classier materials and a smarter layout.

The dashboard is now more centrally aligned, with a large 7inch ‘floating’ touchscreen at the heart of the centre console and moving many of the car’s controls further up into the driver’s line of sight.

The interior certainly feels more spacious, the base of the dashboard having been moved upwards by 15mm for greater knee and leg space for front passengers. At the back, buyers get a choice of a bench offering either four or five seats. And behind that, there’s a 255-litre boot that’s class-leadingly big for a citycar.

Pricing is pretty similar to what went before, which means a Picanto range priced in the £9,500 to £14,000 bracket. There are four trim levels - ‘1’, ‘2’, ‘3’ and ‘GT-Line’.

The plusher model is fitted with some of the most advanced infotainment and convenience technologies available in the A-segment.

Primarily, we’re referring to a navigation system with 3D mapping available with Apple CarPlay and Android Auto for full smartphone integration. A rear-view parking camera with dynamic guidelines is also on offer. An optional wireless smartphone charger and USB port ensures that drivers can keep mobile devices charged on the move.

As for safety, well Kia says that this is the safest A-segment car it has ever made, featuring double the proportion of Advanced High Strength Steel compared to the outgoing model and a selection of active safety technologies.

The stronger, lighter body is supported by six standard airbags and an optional knee airbag, as well as standard Vehicle Stability Management with Electronic Stability Control to ensure stability under braking and cornering. In addition, this Picanto is available with Autonomous Emergency Braking (AEB).

No car in this class has a sniff of a chance unless it can guarantee tiny day to day running costs and the Picanto tries hard to answer that particular call. The base 66bhp 1.0-litre unit manages 64.2mpg on the combined cycle, with CO2 emissions of 101g/km. With the 1.25-litre engine, the figures are 61.4mg and 106g/km, falling to 52.3mpg and 124g/km if you go for this engine with auto transmission. With the 1.0 T-GDI turbo variant, around 65mpg should be possible, along with a sub-100g/km CO2 figure.

Couple the titchy fuel bills with free road tax and cheap insurance and you have a car that makes all kinds of sense for city drivers.

Back that up with a great warranty and the Kia Picanto emerges as one of the very best citycars we’ve seen in quite some time.