THE NEW Skoda Fabia is based on the next generation Volkswagen Polo, which is more than you can say for VW's recently revised baby hatch.

Volkswagen drivers won't get their hands on the next generation Polo for nearly two years. The version that's just out in this country is a refreshed and improved version of the out-going model.

The Fabia marks something of a coup for Skoda.

Until now all its new models were VW hand-me-downs (the Octavia being based on a Golf floor pan). This time the tables have very much turned.

Fabia's more than just a pretty face. It may look small, but this Skoda is one of the biggest superminis. No wonder it offers class-leading levels of interior space, although the back seat is still a no-no for three adults.

The interior will amaze anyone who still thinks of Skodas as crude utilitarian devices. The two-tone plastics are top draw quality with soft-feel materials where necessary and no squeaks or rattles.

The instruments are housed in a cowl that swoops over the fascia, there's a unique-fit Skoda-badged radio-cassette and simply masses of equipment including, on higher specification models, heated seats, airbags (including side bags) air conditioning and a sliding sun-roof.

The Fabia's thoroughly modern specification is reflected in the engine line-up, a peppy 1.4, a frugal 1.9 diesel and a surprisingly feisty 1.9 turbo diesel that's probably the pick of the bunch.

Skoda reckons its new baby will have some of the lowest running costs in the class and, given the marque's high levels of customer satisfaction and loyalty, who am I to argue?

Every bit as good to drive as it is to look at, the Fabia makes sense for motorists who do a lot of their driving in town, but it's not out-gunned on the motorway, either. No Fabia could be called fast, the high quality has led to high weight, but good sound insulation means it doesn't feel strained even at 70mph.

If the Octavia showed Skoda's potential then the Fabia - a finalist in the European Car of the Year Awards remember - finally realises it