The original version has sold 760,000 examples since 2005 – a total that could be topped as the European market for city cars continues to grow.
Like the Peugeot 108, the C1 comes in three-door and five-door versions as well as an 'Airscape' model with a roll-back fabric roof.
Designed primarily for use in an urban environment, the compact C1 is just 3.46m long, 1.62m wide and has a turning circle of 4.8m.
It also features a much more striking exterior design than the previous model, aided by LED daytime running lights and '3D-effect' tail-lights.
Eight exterior colours will be offered, while a pair of two-tone models will also be available initially. Inside, the C1 features bright colours and body-coloured inserts in the door panels.
Two engines will be available: a 68bhp three-cylinder ‘Airdream’ engine and a 1.2-litre three-pot that's good for 82bhp and rated at 99g/km of CO2. Citroën claims 0-60mph in 11.0sec and average economy returns of 65mpg.
The VTi 68 engine will be offered with a five-speed manual gearbox and a stop-start system. Buyers will also be able to specify a five-speed automated manual gearbox, called the 'Efficient Tronic Gearbox'.
The C1, which weighs just 840kg in base form, will also get a 7in touchscreen in the cabin that can ‘mirror’ the driver’s smartphone. Other equipment options include climate control, heated seats and a reversing camera.
Citroën says that the C1 will aim to combine a low price tag with 'optimised' running costs, thanks to its efficient engines and low servicing prices.
Official pricing has yet to be released, but the C1 currently costs upwards of £6995.