Key facts:
Model tested: Mazda3 1.6 TS2 diesel
Price: £17,650
Date tested: November 2010
Road tester: Martin Gurdon

Competing with the Ford Focus, Alfa Romeo Giulietta, Renault Megane and Vauxhall Astra, the Mazda3 faces some tough competition. But the changes to its engine and gearbox have made it one of the most efficient cars in its class.

The outgoing Mazda3 1.6-litre diesel (there's also a 2.2) was a twin-cam, 16-valve engine. Its replacement is still a 1.6, but it's significantly more efficient. The result is a car which uses 2.2 per cent less fuel and emits 117g/km of CO2 per km, down from 119g/km.

This has produced a car with more low-speed torque - that's the pulling power that makes good modern diesels so easy going, which it delivers between a relaxed 1,750rpm through to 2,600rpm.

The new engine is slightly more powerful than before - about 6bhp - and delivers all this without using stop and start technology. Other positive changes include fitting a maintenance-free exhaust catalyst.

The Mazda3 is one of those cars that feels right as soon as you start using it. The driving position is excellent, with very good seat and steering wheel adjustment. The interior is nicely screwed together, and uses high quality plastics and fabrics, although it's sombre.

On the move, the car's steering is accurate, and manages to be both light and taut without being twitchy. The diesel 3 always felt confidence inspiring and composed in corners.

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The rear suspension can take a lot of the praise for this. A compact, multi-link system, it does a good job of keeping the car exactly where it ought to be, without sacrificing ride comfort.

Mazda has stopped selling four-door saloon versions of the Mazda3 in Britain, as these only accounted for about 6 per cent of sales, so only the five-door hatchback is now available.

This is hardly a hardship. With the back seats up, the hatch's boot is smaller than many rivals, with 300 litres of space. But, drop the rear seat backrests, which simply fold flat onto the seat squabs, and this increases to a floor-to-ceiling volume of 1,360 litres.

Space for four adults is generous too, with plenty of head, leg and shoulder room. Five would find things less comfortable. It's possible to carry a third rear passenger, but they'll only be strapped in by a lap belt and will find the slightly raised seat base and centre armrest uncomfortable.

Britain is one of Mazda's most important European markets. The company has a usefully up-to-date range, and a model mix which seems to fit well with people's needs. Its cars are good looking, well-made and grown-up without being boring, and the revised 3 diesel doesn't buck this trend.

This is a lively, efficient, comfortable vehicle.  It feels as if the people involved in engineering it have worked hard at making sure it's good at its job.