Model tested: Seat Ibiza FR 2.0 TDI 5-door
Price: £16,430 - £16,840
Date tested: April 2010
Road tester: Rhian Angharad Jones

Competition is stiff in the supermini market and finding an edge is more important than ever. Most car makers have gone down the route of efficiency and 'green' credentials, but Seat's plan for success is a little more exciting.

Seat has decided to squeeze its ultra-efficient diesel engine under the bonnet, creating the only diesel hot hatch in its class - the Ibiza FR 2.0 TDI. The Spanish car maker has effectively created a hot hatch that's tax-free for the first year and costs pennies to run; it's capable of over 60mpg whilst emitting just 123g/km of CO2.

This isn't the first time Seat has built a hot diesel Ibiza. This time around, it has the Volkswagen Group's latest 141bhp 2-litre diesel engine, giving it a much more refined feel than before.

It's quick too; it can accelerate from 0-62mph in 8.2 seconds - or 8.3 for the five-door - and has a top speed of 130mph. This is the first model in the range to get the new six-speed manual gearbox.

This is all important of course, but the Ibiza FR TDI's headline statistic is undoubtedly its torque: 236lb/ft of pulling power between 1,750 and 2,500rpm; more than a Leon Cupra, Mini John Cooper Works and even a Porsche Cayman.

The steering is light and there's an impressive turning circle, but although it weights up at higher speeds, the steering lacks feel. Seat's XDS handling system is standard; this brakes the inside front wheel during fast cornering for improved stability and grip.

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The suspension has been stiffened and lowered for a sportier feel, which should put a smile on most drivers' faces. The overall ride is firm but not harsh, making the Seat Ibiza FR TDI an attractive choice as a day-to-day drive.

Unlike the petrol version, this car is available as a three-door Sport Coupe or more practical five-door. Standard equipment highlights include climate control, cruise control, cornering fog lights, a trip computer, hill hold assist and MP3 connectivity.

The standard Seat Ibiza scored a five-star EuroNCAP rating and the FR comes with ESP, tyre pressure monitoring and driver, passenger and side airbags as standard.

The Ibiza FR TDI is practical, good value for money and incredibly likeable. But at £16,840 the 5-door version we drove is marginally more expensive than the Cupra, so why would somebody choose to spend more on a car that is less exciting?

After spending time in the car it seems the two models are aimed at very different buyers. The Cupra is an all-out hot hatch, unapologetic in its performance. But the FR combines some of this performance with impressive fuel economy and low emissions. It's frugal but maintains plenty of the Cupra's excitement.

This is a car that's been designed with a young target audience firmly in mind. It is a compromise but, overall, it's a very good one.