Suzuki's Alto city car might just be in the right place at the right time. Steve Walker reports.

The times they are a-changing in the automotive industry. We have the greenhouse effect, oil prices and general economic turmoil to thank for that. Amongst all the upheaval, it's a brave person who makes any kind of prediction about the future without dressing it up with a liberal sprinkling of caveats. If, however, you absolutely had to stick your neck out on one forecast that won't have you wiping egg from your face in five years time, this one is as safe as any: our cars are going to get smaller. How small? Well, Suzuki reckons its latest Alto is a perfect fit.

Suzuki's Alto attempts to woo the growing numbers of buyers in search of a fun, affordable small car. It's certainly small and with economy of over 64mpg, we can tick the affordable box too. Suzuki has tried to instil some of the sporty flavour that endeared its Swift supermini to buyers but overall, the Alto is less competitive than the Swift and will rely on its low costs to attract buyers.

Smaller cars address so many of the problems currently faced by motorists and the automotive industry at a stroke. In car terms, smaller usually means lighter which allows the use of smaller engines that use less fuel and cause less pollution. They also take up less road space, are easier to park and can move through congested streets more effectively. There are drawbacks with regard to how much you can actually fit inside them but, particularly in an urban environment, the benefits seem to outweigh the costs. Suzuki has a long and successful history manufacturing small cars and its latest Alto pools that considerable know-how. The market looks to be moving in Suzuki's direction but will the Alto be able to capitalise?

The Alto's 1.0-litre petrol engine looks ideal for a compact urban vehicle. The 3-cylinder unit musters 67bhp and 90Nm maximum torque at 4,800rpm. That doesn't sound thrilling but in a car that tips the scales at 855kg, it's enough to cover the 0-60mph sprint in 14 seconds. Stick at it and a top speed of 96mph is also attainable. The Alto is 3500mm long with a 2,360mm wheelbase and that helps it achieve a super-tight turning radius of 4.5m that should be ideal for manoeuvring into tight parking spaces or executing the odd cheeky U-turn.

Suzuki's Swift supermini never fails to impress with its sharp handling and the Alto aims to replicate that big fun factor within its more compact package. The MacPherson strut front suspension is tuned to give the rigidity and fast response required in a nimble small car and at the rear, Suzuki's clever 3-link rigid axel suspension is used. This set-up doesn't respond well to surface imperfections but for a car of this size, the Alto handles reasonably well without ever feeling sporty. The suspension's compact design is a further benefit in a small car like the Alto.

It was once enough for a citycar to be small and efficient. If it looked like a shrunken Transit van and had a wow-factor equivalent to a bag of potatoes, nobody much cared. Today, as small cars become a more mainstream choice for urban motorists, there's a demand for them to display a lot more individuality and style. With the Alto, Suzuki has risen to this challenge creating a look it says 'exudes urban energy'. You can be the judge of exactly what it's exuding but with its huge teardrop headlights, oversize grille and sharply rising beltline, the car is definitely distinctive.

We're told that the space for front seat occupants is 'prioritised' in the cabin and so it should be but that doesn't bode well for those in the back. The fact is that most citycars are used to carry more than two people rarely, if ever, and so long as the rear seats can cope with a few shopping bags and a tattered road atlas, they'll do the job. The Alto's C-Pillars are extremely thick and this may result in visibility issues when parking. The interior design of the Alto is rather less successful than the exterior. The grey plastics that used to be the staple of budget small cars a few years back no longer quite cut it and some of the Alto's aren't of the best quality. The controls are chunky and simple to operate in the best Suzuki traditions and the stereo is well designed with nicer finishes than you'll encounter elsewhere.

Suzuki products rarely leave too much to the imagination in terms of equipment and the Alto doesn't break with that tradition. The car is also well-appointed from a safety perspective with Suzuki incorporating a full complement of crumple zones and impact-absorbing structures to keep occupants safe in the event of a collision. Front side and curtain airbags are available, as is ESP stability control.

The citycar sector looks set for boom times ahead on the back of motorists downsizing their vehicles in a quest to cut costs. The Suzuki Alto will be up against some stiff competition for these sales but this manufacturer's small car expertise and aggressive pricing policy should count for something. A target of 60,000 sales annually in Europe has been set for the car which is built by Suzuki in India in partnership with local manufacturer Maruti Udyog.

The bottom line is usually promoted to headline status when we're talking about citycars and the Alto's costs look low enough to warrant just such a big splash. The 1.0-litre petrol engine can return an impressive 64.2mpg on the combined cycle along with 103g/km emissions. It's greener than Robin Hood on a rollercoaster but if you specify the four-speed automatic gearbox, environmental performance will tail off. The auto model gets 53mpg and 122g/km emissions.

Small cars have never made more sense than they do now and all the signs point to models from the diminutive end of the motoring spectrum becoming ever more relevant in the future. The Alto is the latest in a long line of small car efforts from Suzuki and it's arrived at exactly the right time to make hay as the demand for compact, affordable cars increases. Of course, the Alto doesn't have the sector to itself. It'll have to face down competition from numerous other fun, funky small car offerings but the low costs and upfront affordability mean it's in with a chance.