Panda 4×4 sits on the same wheelbase and has the same track width front and rear as the two wheel drive system. It uses a torque-on-demand transmission with a differential at each axle and electronically-controlled four-wheel drive coupling, offering permanent all-wheel drive with the ability to brake individual wheels when grip is low.

The previous model used a 1.2-litre petrol engine with 59bhp, and 1.3 MultiJet diesel with 68bhp. Fiat says the new TwinAir turbocharged petrol engine, as used in the two-wheel drive Panda, has 40% more torque than the unit it replaces, which with a low ratio first gear allows for easier uphill starts and better pick-up from a standstill. Similar improvements are claimed for the diesel version.

Refinement has also been a key area of focus for the new car, and the new Panda 4×4 is claimed to be quieter with better ride quality than its predecessor. The carmaker will offer a range of accessories to allow owners to customise the car for urban or off-road use.