THIS is the new smart fortwo, due to go on sale next autumn.

Although retaining the compact dimensions that have made it so popular among city-based drivers, the new version is seven inches longer and boasts an extra 70 litres of luggage space (up to 220 litres).

The 0.7-litre petrol engine has been upgraded to 1.0-litre and will be available in 61, 71 and turbocharged 84bhp outputs. A 45bhp diesel will also be offered.

Available as a hatchback and cabriolet, the range will be joined by a sporty Brabus version at the end of 2007.