This is the car which Mazda hopes will blow the market for small family cars wide open – the all new Mazda 3.

The previous Mazda 3 was a good all-rounder, but never really became the smash hit it might have been – but from Stuart Milne's test drive, it seems the new car is better in almost every area.

Ford Focus, Honda Civic, even BMW 1 Series  – they all stand out. Whether you like the radical look of the latter two or not, they all make a statement in their own way.

And that was the failing of the original Mazda 3 – it simply looked too bland. A five-seat shrinking violet. And it wasn't sparkling to drive either.

But the same cannot be said of its replacement. It takes huge styling cues from the radical Furai concept car, and offers a level of driving dynamism previously lacking in the Mazda 3.

Sleek lines

Like the current car, the new Mazda 3 will be offered in four and five-door versions. We tested the five-door hatch, and it's certainly a striking machine – and unlike most small saloons, the four-door is still a bit of a looker.

Car makers often describe their latest car's look as 'purposeful', but in the case of this car it really is. Those sleek lines also help to create best-in-class aerodynamics.

The interior has received a great deal of attention. Gone are the dull shapes of the old car, and in comes a more upmarket look, and a genuinely solid feel. On our test route, there wasn't a single squeak, rattle or drafty wind noise, which is a rare thing indeed.

We tested the more powerful of the two 2.2-litre diesel engines on offer. Producing 183bhp, it is expected to be the most popular engine for retail buyers, while the 148bhp unit is tipped to find favour with fleets.

It offers plenty of power, but more importantly a massive slice of pulling power – 295lb/ft to be precise. That makes for an 8.2 second 0-62mph time and a top speed of 132mph; the fastest in the range. But it’s the mid-range pull essential for overtaking that really impresses, along with the astonishing levels of refinement.

Superbly refined

The engine is muted at tickover, and is barely audible under hard acceleration making it one of the most refined in its class.

A 1.6 diesel is also offered, as are 1.6 and 2-litre petrol variants. An automatic gearbox will also be available – a first for the Mazda 3 – and a fuel-saving stop/start system will be introduced later this year.

We also sampled the 1.6 petrol engine, and while muted at lower speeds, there was more noise at motorway speeds than the diesel.

It proved happy to cruise, but its relative lack of pulling power (109Nm) meant steep hills were laboured with two passengers on board. Top line figures for this engine are 12.2 seconds to reach 62mph, and a top speed of 116mph.

The Mazda 3's ride is very good, although enthusiastic drivers may find it rolls too much through the bends, and the steering is too light and vague to offer the levels of engagement that a Ford Focus provides. But it's still involving enough to raise a smile.

Rear legroom is adequate, and not nearly as good as the best in class, but interior storage space is alarmingly capacious. Reaching to the back of the glovebox will take a totally outstretched arm from a passenger leaning forward, and there's a large centre box between the front seats.

The boot measures 340 litres, unless the loud Bose stereo with its spare wheel-mounted subwoofer is specified, when space is reduced by 40 litres. The saloon is slightly larger at 430 litres.

New instrumentation

Mazda has developed a new 4.1-inch Multi Instrument Display (MID) which is available in two-tone dot matrix or LCD formats, and integrates a trip computer, audio system and navigation information. It is operated via the buttons around the stereo or on the steering wheel. Despite the amount of buttons on the wheel, the system appears remarkably intuitive.

The new Mazda 3 represents a seismic leap over the previous model in terms of design, dynamics and quality. A Mazda 3 MPS hot hatch will slake the appetite for performance buyers, but as a standard car, the new Three is asking some serious questions of the establishment.

Read our first impressions from the Mazda 3 launch on the Auto Trader Blog