Honda has always pitched its Accord range as a rival to the premium German brands but has generally priced its upper-medium model at a lower level to give it an advantage in terms of running costs.

Not so with its Type S model. The new range-topper is priced to compete head-on with models such as Audi’s A4 2.0 TDI 143 S line and the BMW 318d M Sport.

While the Type S version is seen as a halo model for the rest of the Accord range, and is expected to account for up to 10% of registrations, its price is around £1,150 more than the previous range-topping EX GT trim level.

However, the Type S does come with plenty of added value as standard.

Most notably, and importantly for its sporty Type S branding, it features a new, higher-powered version of the 2.2-litre i-DTEC diesel engine.

Power rises from 150 to 180bhp and on the road this extra power can be felt with keener acceleration.

But just as importantly for the user-choosers who are its key target market, this hasn't impacted too severely on economy or emissions.

Despite its extra power, the Type S returns a claimed average of 48.7mpg and emits 154g/km of CO2, compared with 49.7mpg and 150g/km for the regular 150bhp 2.2 diesel.

That means the Type S stays in the same 21% benefit-in-kind tax band.

In terms of equipment the Honda is well endowed: 18-inch alloys and a bodykit lend the Type S an aggreessive look, while Xenon headlights and tinted glass add to the sport theme.

Inside, the list of equipment includes satellite navigation with integrated Bluetooth telephony, full leather seats, 10-speaker stereo with CD multichanger and MP3 compatibility, front and rear parking sensors with rear parking camera, electric heated front seats, cruise control, automatic headlights and rain-sensing wipers.

Build quality is excellent, with the Accord’s interior and controls having a feeling of solidity, while for family drivers the five-star EuroNCAP crash test result is comforting.

While a pricetag in excess of £26,000 seems steep for an Accord, you do get a lot of car for the money with the new Type S version.

However, it is up against some very strong brands and Honda’s semi-premium positioning means it has a tough fight on its hands.

Rivals
Audi A4 2.0 TDI 143 S line
BMW 318d M Sport
Mercedes-Benz C220 CDI Sport

P11d price
Honda is £155 cheaper than Audi, while BMW is £1,200 further back. Mercedes looks pricey.
1. Accord £26,015
2. A4 £26,170
3. 318d £27,270
4. C220 £27,640

Emissions and tax
Audi’s BIK bill for 40% taxpayer is £157/month, BMW £163, Honda £182 and Mercedes £211.
1. 318d 123g/km/18%
2. A4 139g/km/18%
3. Accord 154g/km/21%
4. C220 160g/km/23%

Fuel costs
BMW claims 60.1mpg combined. Audi delivers 53.3mpg, Honda 48.7 and Mercedes 47.9mpg.
1. 318d 7.79/£4,674
2. A4 9.12/£5,472
3. Accord 9.62/£5,772
4. C220 9.78/£5,868

Wholelife costs
BMW undercuts the Audi by 1ppm. C220 CDI is well adrift – costing £2,200 more than 318d.
1. 318d 39.59/£23,754
2. A4 40.68/£24,408
3. Accord 42.08/£25,248
4. C220 43.41/£26,046

Leasing rates
Lowest monthly rental with maintenance from www.comparecontracthire.com (excluding VAT).
1. 318d £440 (Arval)
2. A4 £452 (Arval)
3. Accord £481 (TCH)
4. C220 £483 (Arval)

Verdict
Viewed in isolation, the Type S Accord is a very good package – good to drive, well equipped and with excellent build quality. The three German rivals also offer these attributes but are more expensive so the BMW 318d’s blend of lowest running costs and driver BIK win.

Winner: BMW 318d M Sport

Fleet view
We have 20 Honda Accords on our fleet. They strike the right balance between price and specification. You get quite lot for your money and the build quality is good.
Nigel Trotman, fleet manager, Lloyds TsB Autolease