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.
Fiat is claiming boot space of 420 litres for the hatchback and 520 litres for the estate, but with the 60/40 split folding rear seats of the estate folded down, maximum storage capacity will rise sharply. Fiat also says practicality is boosted by a low loading lip.
The Tipo hatchback is 4370mm long, 1790mm wide and 1500mm tall, compared with the Ford Focus’s 4360mm length, 1823 width and 1469 height. The Tipo estate, by comparison, is 200mm longer than the hatchback, at 4570mm.
The Tipo hatchback and estate models were revealed at the Geneva motor show, and Fiat also revealed the Tipo saloon, although it won’t be coming to the UK.