• Third generation of Fiat’s popular city car
• Priced from £8,900 on the road
• On sale from the end of February

Prices for the new Fiat Panda have been announced, ahead of its retail launch at the end of this month.

It will be available from £8,900 on the road for an entry level Pop 1.2 8v. The most expensive model is the Lounge 1.3 Multijet, which is priced at £12,250.

Initially there will be three engines to choose from: a 69bhp 1.2-litre petrol, Fiat’s award winning 0.9-litre TwinAir petrol which develops 85bhp, and also a 75bhp 1.30-litre MultiJet turbo-diesel.

Passenger safety has been a key priority in the design of the Panda. All cars come with at least four airbags, double seatbelt pre-tensioners (which hold you tight into the seat during a crash) and anti-whiplash headrests. An electronic stability program (ESP) is also available, but only as an optional extra. A collision mitigation system will also soon be offered, which uses a laser to recognise obstacles and apply the brakes if necessary.

Overall the Panda scored four stars on the Euro NCAP safety test. It missed out on the final star largely because the ESP system was not available on the car used for the test.

The Panda is available in the same three trim levels as its glamorous sister car, the Fiat 500. The entry level Pop trim sees it equipped with electric windows, central locking, Dualdrive electric power steering (which can be made lighter at the push of a button for easy manoeuvring), four airbags and body coloured bumpers.

Mid-range Easy trim level adds remote central locking, air conditioning, roof rails and an uprated audio system. Lounge models sit at the top of the range and come with heated electric door mirrors, 15-inch alloy wheels, front fog lamps and colour matched body mouldings and door handles.

For greater customisation customers will be able to order their Panda in ten different exterior paint finishes and with six different interior and dashboard combinations.

By Daljinder Nagra