Prices for the new Punto vary, with a starting price of just £9,990 OTR for Pop 1.2 8-valve and the highly specified Lounge 1.3 MultiJet version commanding a starting price of £15,600 OTR.

Available initially with a choice of six low emissions Euro 5 engines – and with a TwinAir version coming in April – all fitted with Start&Stop as standard, the new Punto comes in a more simplified line-up of three main levels, similar to the Fiat 500 and forthcoming new Panda – Pop (base), Easy (mid) and Lounge (high).

The big news for new Punto is the addition of two new engines – an 85hp version of the MultiJet diesel engine and the acclaimed Engine of the Year85hp TwinAir. The full list will comprise: 1.2 8-valve petrol (69hp), 1.4 8-valve petrol (77hp), 1.4 16-valve MultiAir petrol (105hp and 135hp), TwinAir 0.9-litre petrol (85hp) and 1.3 16-valve MultiJet diesel (75hp and 85hp).

The evolution of the Punto range includes external styling changes incorporating fully colour coded front and rear bumpers for a more sophisticated look, while three new exterior colours are introduced: Brit Pop Blue, Tango Red and Underground Grey.

Inside, new sportier seat fabrics and refreshed dashboard inserts identify the new car, along with a revised specification to provide a more defined spread of choice for customers and a more focused selection of options.

Standard equipment in the entry-level Pop model includes remote central locking, electric front windows, driver and passenger airbags, window airbags, radio/CD/MP3 player, electric power steering and height-adjustable driver seat.

Easy trim level adds such equipment as leather steering wheel, 15-inch alloy wheels, and air conditioning, GBT level additionally gets sport suspension, rear spoiler and side skirts, while Lounge adds climate control, front fog lamps, cruise control, ambient interior lighting and electric sunroof.

Elena Bernardelli, marketing director, Fiat Group Automobiles UK, said:'Punto is up against some tough competition in its sector but we are confident that we are able to offer an attractive package at exceptional value-for-money prices to keep it a viable and desirable proposition.'

The all-new 2012 Fiat Punto recenty made its International debut at last year's FranKfurt Motor Show.