The Fiat Tipo will be priced from £12,995 to £18,995 for the hatchback variant and £13,995 to £19,995 for the estate when it goes on sale in September, undercutting both the Ford Focus and Vauxhall Astra.
The Tipo’s engine range is made up of two diesel options - 1.3 and 1.6-litre units with 94bhp and 148lb ft and 118bhp and 236lb ft respectively - and three petrols: a normally aspirated 1.4-litre unit producing 94bhp and 92lb ft, a normally aspirated 1.6 with 108bhp and 150lb ft and a turbocharged 1.4 producing 118bhp and 152lb ft.
A dual-clutch automatic transmission is offered on the larger of the diesel engines and a full automatic gearbox is standard with the 1.6-litre petrol.
The entry-level Tipo has air-con, remote central locking, electric front windows, electric mirrors, a DAB radio and Bluetooth connectivity.
Likely to be the most popular hatchback model, the 1.6-litre diesel engine in mid-range spec with a manual transmission costs £16,995. For the estate version, the same engine and trim costs £1000 more, at £17,995.