DAIHATSU'S rapidly expanding line-up will be joined in July by an all-new model - the Terios pocket 4x4. The newcomer will slot into the market currently dominated by the Toyota RAV 4 and Suzuki Vitara, but will have a significant price advantage over its rivals.

Demand in Japan is already outstripping the predicted 2,000 sales a month and Daihatsu believes it will carve out its own market niche in the UK. Powered by a 1.3-litre 16-valve petrol engine, the Terios has full-time four wheel drive and a choice of five-speed manual or four-speed automatic gearboxes.

It is compact, light and has car-like handling characteristics, but room enough to accommodate five adults. Standard specification is likely to include dual airbags and power steering, with ABS and air conditioning as optional extras. Available initially only in five-door guise, the Terios is expected to cost around £12,500 when it hits the showrooms just in time for the R-registration plate boom.