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The Citroën C2 is now available with a fast and frugal new engine.

Powered by a 1.6-litre diesel engine, the Citroën C2 HDi VTS produces 110bhp and 192lb/ft of pulling power.

This accelerates the Citroën C2 from 0-60mph in 9.4 seconds and on to a top speed of 120mph.

A combination of an efficient diesel engine and the small size of the Citroën C2 give it a combined fuel consumption of 64mpg. The C2 emits 119g/km placing it in tax band B, meaning an annual bill of £35 a year.

The Citroën C2 VTS has been sported up with a bodykit and 16-inch alloy wheels. Standard features include air conditioning, electronic stability program, four airbags, alarm, anti-lock brakes and electronic brake distribution.

It’s been billed by Citroën as a green alternative to the petrol-powered 1.6-litre VTS. While the diesel has performance figures slightly behind its sibling the extra pull of the engine should make the new car feel punchier around town and during overtaking.

The combined fuel consumption of 41mpg for the 1.6-litre petrol VTS is almost 20mpg behind the efficient diesel.

Available now, the C2 1.6HDi VTS costs £13,400 - £1,000 more than the petrol alternative. But Citroën is currently including the car in their cashback scheme, dropping the price to £10,995, while buyers over 25 are eligible for a year’s free insurance.

Citroën will be hoping that the latest C2 will have the edge over its rivals, including the Ford Fiesta, Mazda 2 and Peugeot 207.

We’ve driven the C2 1.4i 16V Stop & Start SensoDrive, and had this to say after our test:

The C2 Stop & Start is fun to drive, though other higher performance models in the range cater for more driving thrills. It is also responsive and nimble, with a tight turning circle making it easy to manoeuvre. Plus it’s comfortable for those undertaking journeys beyond commuting and driving short distances.