The mild hybrid version of the new Grande Panda has some fleet appeal. By John Kendall.

What is it? Five-seat mild hybrid hatchback  How much? From £18,035 OTR  CO2 Emissions 115-117g/km  Economy? Up to 56.5mpg (WLTP Combined)

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A compact car starting from £18,035 sounds like a bargain these days, particularly as that includes automatic transmission. Throw in the Grande Panda’s cheeky design too and it looks as though Fiat is on to something here. As we have said in reviewing the electric variant, it shares its Stellantis Smart Car platform with the Vauxhall Frontera, Citroën C3 and Citroën C3 Aircross, which aims to help keep costs down.

Grande Panda shares the drivetrain options for those other models too, as with the fully electric Grande Panda BEV we tested recently. This time, we are turning our attention to the 1.2-litre three-cylinder turbo petrol mild hybrid engine.

Several generations of drivers have come along since the original Panda caused a stir in the 1980s and Fiat has given us several visual cues recalling the original, including the four Fiat stripes on the side panel behind the rear doors. Move slightly and they form Fiat instead. No electronics are involved, it’s lenticular print, the same visual trick that used to be used on some children’s toys. What it does is accentuate the fun element that Fiat included in the Grande Panda design.

In some ways, the entry-level Pop spec suits the internal combustion-powered model well, while also recalling some of the simplicity of the original Panda. It’s not short of equipment though. Advanced driver-assistance systems include rear parking sensors, cruise control, speed limiter, active safety braking and lane keeping assist. A touch of a button will temporarily disable the speed limit warning signal and lane keeping assistance. There’s plenty here to keep a fleet manager happy.

As is usually the case today, there is a digital instrument display and central touchscreen which includes screen mirroring for a smartphone, as well as wireless phone charging and up to four USB-C sockets.

The core of the hybrid power system, the Stellantis 1.2-litre three-cylinder turbo motor, can trace its origins back over 10 years to a Peugeot and Citroën engine. It’s one I have driven fairly extensively in various models with both manual and automatic transmission. I always found it to be a pleasant travelling companion. There are smoother three-cylinder engines but allied to a conventional automatic, it was a good travelling companion. To my mind, something has been lost in the switch to a dual-clutch automated transmission, combined with the hybrid drive system. The transmission seemed to be constantly shifting gear at lower speeds and in stop/start driving only settling down at higher speeds. It doesn’t seem to be as well set up as it could be. Electric power definitely provides more peaceful progress.

With 100hp available, the engine provides good progress with the 28hp hybrid motor providing more acceleration when needed and also acting as a regenerating system. Combined power for the system is 110hp. Reversing is usually in electric drive and it’s also possible to drive off under electric power only. 117g/km CO2 is respectably low too. For drivers covering longer distances, a petrol engine may be preferred, but the Grande Panda electric would be my choice.

Grande Panda is a fun place to be thanks to the attention to design detail and good driving dynamics. The hybrid drive will suit some, but the electric variant is the better choice.

In Brief:

Key fleet model: Grande Panda Hybrid Pop

For: Design; fun interior; inside space

Against: Intrusive engine noise; restless gear-shifting

Seven-word summary: Fun and affordable Fiat has fleet appeal

Also consider: Vauxhall Frontera ; Citroën C3; Citroën C3 Aircross