The biggest improvement in the motor industry in recent years is among small cars.

Big cars have got better, of course, but it’s the supermini which has really come on leaps and bounds.

If you’re a budget driver with £7,000 or £8,000 to spend, you’re spoiled for choice for competent, fun, stylish superminis which can handle town driving with aplomb.

It’s on the open roads where these cars can come unstuck. But, as the Suzuki Alto proves, there are some superminis which are pretty much at home on the motorway, too.

I’ve spent much of the last week or so up and down the M1, and the Alto stood up to the test well. I must say an Alto isn’t a car I’d choose to take to London and back, but it was great.

This is part of the new Suzuki range. The Swift supermini is well regarded, as is the Splash mini-people carrier. The new SX4 4x4 model is a big improvement, so no wonder Suzuki is riding high at the moment.

The Alto represents the biggest improvement over the old model, though.

It has a couple of shortcomings. The boot is tiny and hard to access, and the plastics in the cabin aren’t quite as plush as some of the bigger Suzukis. Neither am I a fan of the added-on dials above the dash, much-loved by the likes of the Smart car.

Having said that, the engine is much better than expected. You might imagine a three-cylinder, one-litre unit to be crude and noisy. Well, it is certainly noisier than the 1.3-litre engine in the Swift, but it is flexible and economical. You’ll get more than 70mpg on a run, yet it will zip to 60mph in 13.5 seconds.

The Alto, for so long the forgotten car of the Suzuki clan, is now a worthy member of a team which produces some cracking cars. Swift started the revolution, offering almost MINI-like style for thousands of pounds less. The new SX-4 continued the theme when it was unveiled recently.

Alto has been around for quite a while, 30 years in the UK in fact, where we are now on to the seventh generation model, and it’s gaining in importance.

The city car market is both expanding and improving rapidly, meaning it’s no longer enough to simply turn out something small with a bare minimum of trim. Small cars need to have a purpose other than just being small – a hook on which to hang their hat.

The Alto’s hook is the 18 to 30-year-old group. First-time car buyers and young drivers are among the primary buyers for compact city cars, hence the cheeky looks. However, focussing exterior design on a specific sector isn’t enough to ensure success in a market containing youth-oriented city cars from Toyota, Citroen and Peugeot in the shape of the universally bodied Aygo, C1 and 107, or Renault’s Twingo, Kia’s Picanto and Volkswagen’s Fox.

With that in mind, Suzuki has attempted to add a little exuberance to the interior. Flashes of the exterior colour – nine are available, with four new shades deliberately introduced for younger customers – can be found on the seats, while two-tone door panels and two-tone plastic adds some colour. In the top-of-the-line SZ4 variant, an additional rev-counter pod just like in the bigger Splash model can be found.

It may sound like a token gesture, but it’s a useful aid in getting the most out of the engine in terms of performance and efficiency. The latter is the most relevant. Although its grumbly three-cylinder form gives the engine plenty of character, it doesn’t offer any real surprises.

Performance is ample and evenly distributed, working well in conjunction with the evenly spaced five-speed gearbox, although a four-speed manual is also available – a rarity in this segment.

It’s the combined consumption of a little over 64mpg and CO2 emissions that only just miss out on the no road tax ban that will really appeal to young hearts and minds, however. Running costs are pared to a bare minimum, with insurance groupings that peak at 2E.

Combine that with the Alto’s perfect proportions for city use, comfortable interior and a well-damped ride that makes it reasonable on faster roads, too, and you’ve a versatile package.

The Alto feels stable at speed and nimble in town, with the only downside being a thick A-pillar base that can block the line of sight.

A worthy addition to both the Suzuki range and the compact city car segment, the Alto’s simple appeal makes car shopping for younger drivers that little bit more complicated.

Suzuki Alto 1.0 12v PRICE: £7,495. This is the entry-level model, with prices going up to £8,750 for the SZ4.

ENGINE: A 996cc, three-cylinder unit generating 68PS.

PERFORMANCE: Top speed 96mph, 0-60mph in 13.5 seconds.

COSTS: Urban (town) 51.4mpg; extra-urban (country) 74.3mpg; combined 64.2mpg.

INSURANCE: Group 1E.

WARRANTY: Three years, 60,000 miles.

Steve's Ratings: Performance: 3/5 Ride/Handling: 3/5 Space/Practicality: 3/5 Equipment: 3/5 Security/Safety: 2/5 OVERALL: 3/5