The Mazda 2 was named 2008 World Car of the Year and we’ve fallen for its charms as well.

Why do we covet it so much? Put simply, it’s more fun to drive, well-designed and better for the environment than its predecessor and most of its competitors too.

Buy the diesel and it’s also one of the lightest cars on your wallet.

We’ve already driven the greenest Mazda 2 of the line-up at its launch in Stockholm, and now we’ve sampled an oil-burning Mazda 2 as well.

Powered by a conventional 1.4-litre common-rail turbo diesel engine it has 67bhp and 118lb/ft of pulling power.

With acceleration from 0-62mph taking a yawning 15.5 seconds, this is not a car you buy for its performance credentials. The Mazda 2 Sport can cater for those needs.

Prius-matching eco credentials

What is on offer is fuel economy matching a carefully-driven Toyota Prius – a hugely impressive 65.7mpg on the combined cycle.

Emissions of 107g/km (the Prius manages 104g/km) place the 2 in a budget-friendly tax band too.

So the Mazda 2 diesel is both pretty and an eco-warrior or money-saver, depending on your priorities.

The engineers responsible for its development kept its weight to an absolute minimum, saving 100kg compared with its predecessor.

Being freed from the equivalent of one-and-a-half passengers in weight is a big factor in its excellent economy. But the weight saving also has a downside.

Minimal use of sound-deadening materials allows a little more engine noise into the cabin than in heavier rivals.

Supermini handling master class

But get to a corner, and you can forgive the compromise in refinement. The flyweight Mazda 2 flows excellently between bends and despite its poor initial acceleration, it’s easy to keep on the boil once up to speed.

All of the controls are well-weighted and free from slack, and we particularly like the dash-mounted gear stick, which sits very close to the steering wheel for quick and easy changes.

View our Mazda 2 slide show

The firm suspension gives the driver great feedback, but it is also supple enough over damaged tarmac to keep the occupants comfortable.

So would we recommend the diesel over the petrol? It certainly makes bills easy to swallow and it will suit big-mile motorway drivers down to the ground.

But, we’d still opt for a silky-smooth 1.3-litre petrol if push came to shove because it’s quicker, more refined and still manages a respectable 52.3mpg.

It’s also necessary to weigh up the pros and cons of choosing the Mazda 2 over the excellent Ford Fiesta. On plus side, the Mazda 2 beats the Fiesta on price, and it’s already a rarer sight on British roads, making it a more individual purchase.

On the other hand, the Fiesta has a better interior and a bigger dealer network to take care of your after sales support.

Key facts

Model tested: Mazda 2 1.4D TS2 3dr
On the road price: £11,153
Road tester: Andy Goodwin