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 Citroen C1 currently costs upwards of £6995.