Alfa Romeo hasn’t had a small hatchback for a long time. Its previous effort, the Alfasud was considered one of its most successful models, but after it was dropped in the 1980s, it concentrated on larger cars.

But the small Alfa hatch is back, in the Mito; and the significance of a small, cheap to run hatchback launching now isn’t lost on the company. It hopes to attract buyers downsizing from bigger cars, as well as attracting younger buyers who might otherwise choose a Mini.

We sent Stuart Milne to take to the South Downs to see whether the dinky Mito has what it takes to compete in the ultra popular supermini market.

There aren’t many superminis which are inspired by a supercar, but the Alfa Mito can certainly lay claim to being one.

It takes design cues from the stunning Alfa 8C Competizione supercar, and while its doe-eyed looks divide opinion, there’s no doubting the Mito is one striking machine. And unlike the Mini, the Mito moves the game on, rather than harking back to more traditional designs.

But Alfa has seen the success of Mini’s extensive list of options, and will offer stripes, giant Alfa logos and different coloured head and tail light surrounds so buyers can personalise their cars to stand out yet further.

The Mito is more than just a rival for the Brit-built Mini; it’s the car Alfa hopes will appeal to groups of buyers who don’t generally choose Alfas - the under 35s and women.

The Italian icon is banking on competitive pricing, high specification and low running costs to help achieve this.

Mito – MIlan and TOrino

Alfa is known for its sporting heritage, and the Mito - which is an abbreviation of Milan and Torino, where the car is designed and built - wouldn’t be a welcome introduction to the brand if it didn’t live up to expectations.

We sampled two models, and found the Mito to offer entertainment in spades. There‘s minimal torque steer and it offers reassuring composure through the bends. Our only criticism is wooly steering which isn't as sharp as the best in its class.

Alfa is fitting its Q2 electronic limited slip differential system across the range, which eliminates torque steer - the sensation of side-to-side tugging from the front wheels - by effectively braking the front inner wheel during cornering to increase traction on the wheel with the most load.

All models feature Alfa’s DNA system, which is a distillation of the handling controls pioneered in Ferrari’s F1 and road cars. It offers three modes; Dynamic, Normal and All Weather, and adjusts throttle response, steering sharpness and the amount of intervention from the stability control systems depending on the setting.

We found the Mito to be most entertaining in Dynamic mode, particularly with an ‘overboost’ function on the turbocharged engines, which can provide up to an extra 10bhp when needed for short periods. However, the firm suspension setup meant we found ourselves reaching for the toggle switch near the gearstick on bumpy roads for some extra comfort; even if that meant losing some of the steering feel.

We tested the 1.6-litre diesel engine, which develops 120bhp and the 155bhp 1.4-litre turbocharged petrol unit.

The diesel engine feels punchy, its 236lb/ft of pulling power offering a mid-range surge of power that cannot be communicated through its on-paper performance figures. Alfa says it can reach 62mph in 9.9 seconds, before hitting 123mph.

While smooth and quiet at low and moderate engine speeds, it becomes thrashy above 4,000rpm. It’s a small hardship though; peak power arrives at just 1,750rpm.

Mito GTA hot hatch on the way

The Mini Cooper S-rivaling 155bhp 1.4-litre turbocharged petrol engine is both refined and rapid, even if performance is a little shy of the Cooper S’s pace. It’ll reach 62mph in eight seconds, before hitting 134mph. This engine makes the
most of the Mito’s balanced chassis, although an Alfa insider confirmed a Mini John Cooper Works-rivaling hot Mito GTA will be available around the end of 2009, offering best in class power.

Alfa will offer a total of five engines; three petrol and two diesel. Other petrol options include a 95bhp 1.4 - the only engine in the line-up not to feature a turbocharger - and a 120bhp version of the 1.4 turbo. The latter is expected to be the best selling model, and offers an 8.8 second 0-62mph time and a 123mph top speed.

Diesel choice is limited to two engines, with Alfa claiming petrol models are more attractive in the supermini class. In addition to the 1.6 we tested, the 1.3-litre diesel from the Fiat 500 and Panda is available. It might have less power, but it produces just 119g/km of CO2 and covers an average of 62.8mpg.

That’s around 4mpg more than the 126g/km 1.6 diesel. The petrol engines all return between 47.9 and 43.5mpg, and emit between 138 and 153g/km of CO2.

Sitting behind the wheel, the Mito initially feels a little claustrophobic but the hemmed-in feeling soon passes, in the front at least. Space in the rear is limited, but feels more ample than the Mini. A high shoulder line means the base of the rear window is high in the back.

Boot space is reasonable, although a high lip will make loading bulky or heavy luggage tricky.

Alfa has spent a lot of time and money improving the quality of its cabins, and the Mito is the best yet, looking very attractive and well constructed. The seats are comfortable and supportive, and it's easy to find a good driving position.

Strong used values

The Mito’s on-paper prices are around 10 per cent less than the Mini, and while higher than the Vauxhall Corsa and Peugeot 207, Alfa says its car has a higher level of kit, making the ‘spec-adjusted’ price lower.

Standard kit for the entry-level Turismo model includes the DNA and Q2 handling systems, ESP, air-con, seven airbags, electric windows and mirrors and LED tail lights; unique in the class.

The Lusso model adds handsome 16-inch alloys, steering wheel audio controls, a carbon fibre-effect dash and driver’s seat lumbar support.

Topping the range is the Veloce - pronounced Vel-och-ay - which also has 17-inch alloys, red brake calipers, rear spoiler and the excellent Blue&Me system combining hands free integration with voice activation and an USB MP3 player input.

Alfa say the Mito's retained values will be around 10 per ten higher than the average supermini, and exactly the same as the Mini's 48 per cent retained value after three years/60,000 miles.

Despite scoring a full five stars in the EuroNCAP crash test programme, Alfa is confident of a maximum six star rating with the revised test ranking which will be introduced soon.

So does Alfa Romeo have a genuine Mini rival on its hands? It might lose out on absolute driving dynamics, but more than makes up for it with its running costs and design flair that’s rare in the supermini class.

Alfa Romeo Mito: Rate it on the Auto Trader Cool-o-meter