Cute, cheeky and impossibly easy to live with, is this the ultimate city slicker?

Well over ten years after the first Smart appeared on European roads, the titchy two-seater still has the ability to turn heads. The second-generation model was launched last year and has already built up a strong following with drivers looking for a well-made city car with all the trappings of an executive saloon.

But what marks the new version out from the ground-breaking predecessor? Well, the cabin benefi ts from an even more expensive feel, while the integrated stereo and switches have a real Mercedes stamp of quality. Trademark Smart features suchas the pod clock and rev counter, plus carpeted dash and centrally mounted key slot, remain. And there’s still the same sensation of space when seated inside, although it’s a shame some steering wheel adjustment wasn’t engineered into the new design.

Boot space has grown from 150 to 220 litres and the front passenger seat folds forward to carry long loads. Clearly the Smart can’t compete with its four-seat rivals in the space stakes, but ideas such as the split tailgate that aids access in tight spots mean it will offer enough practicality for many.

There’s enough performance, too. Top speed is limited to 92mph, but more importantly the normally aspirated 84bhp engine, combined with a low 750kg kerbweight, helps it reach 0-60mph in 10.9 seconds.

As with the old car, the automated manual gearbox has hesitant shifts, and there’s a pause between gears that causes the car to lurch back and forth as you change up.

Out of town, the short wheelbase and stiff ride mean the ForTwo is nervous and jarring on anything other than smooth surfaces. In corners, the inert steering weights up, but feels numb. While there’s plenty of grip, the stability control kicks in way before the tyres even begin to push wide.

And despite recording the short stopping distances in our tests, the brake pedal is as stiff as its predecessor’s, making it hard to slow progressively.

Other elements of the Smart experience that remain are more welcome. There’s an extensive range of options and colours available, for example, and with a four-star Euro NCAP rating, the ForTwo’s strong safety reputation stays intact.