Smart’s new fortwo range will cost from under £7,000 when it goes on sale in September.

The two-seater coupe and convertible city car range is powered by a range of 700cc turbocharged petrol engines ranging between 61 and 84bhp, and will cost from £6,900 to £10,970.

The new model features a revised five-speed automatic gearbox and is also seven inches longer.

Dermot Kelly, managing director of the Mercedes Car Group, said: “The fortwo offers a solution to the problems associated with urban mobility and we need this if we are to face up to the issues around climate change.”