JUST launched, Mazda has ambitious plans for its new entry-level five-door model the Mazda2 - with a confident prediction that it will triple its B segment sales during 2008.

And after just a short while in the company of the Mazda2, it's hard to knock this confidence, as the new model is extremely likeable.

Visually the new model has smart good looks enhanced by a new palette of exterior colours (designed to appeal to younger eyes) including Golden Yellow, Icy Blue, Spirited Green and Sunlight Silver.

The expressive organic face features large, almond shaped headlights, a small top grille topped by a fold-over bonnet and a deep mesh bumper grille, while the silhouette is dominated by a strong raising waistline that finishes in a smoothly rounded rump.

The curving panel work makes the Mazda2 appear and feel bigger than before - a sensation that isn't deceptive, as it has grown in every direction.

But to save this supermini from putting on weight, as would be the danger of getting bigger, Mazda has instigated a series of weight-saving techniques using lightweight materials.

The additional benefit of a larger exterior is more cabin space, so much so that the Mazda2 can almost challenge its bigger sibling the Mazda3 in terms of accommodation.

And further back, the 250-litre boot is useable if not especially huge. More space can be released by folding down the 60-40 split rear seats.

Inside it's all clean-cut, smooth surfaces and it feels well put together with a combination of silver and black detailing to give it a sporting touch.

The Mazda2 arrives in the UK with the choice of three four-cylinder petrol engines, all of which are cleaner than before with better fuel economy.

The 1.3-litre petrol (1,348cc) can be specified in two power levels rated at 75bhp and 86bhp, both of which return 52.3mpg on the combined cycle and 129g/km of CO2.

Although there isn't a big difference on paper, the higher powered version will be the one to go for, being more than a second quicker in the sprint and adding 3mph to the maximum.

With its five-speed manual transmission, it provides enough flexibility to cope with most situations. Only a long uphill drag will force the unit to struggle (Mazda choosing Scotland for the UK press launch so there were plenty of hills).

The range-topping 1.5-litre (1,498cc) is naturally a much livelier contributor and more responsive thanks to its 103bhp, which means the dash to 62mph gets close to sub-10 seconds (10.4 to be precise) while top speed increases to 117mph.

But this extra performance doesn't come with a significant penalty in terms of fuel consumption.

Mazda claims 47.9mpg on an average run, which is very welcome, and a CO2 rating of 140g/km.

There is some nice gear changing from the semi-dashboard mounted gear lever, which operates efficiently without having to force anything through.

Mazda will add a high torque 1.4-litre 68bhp turbo diesel to the line-up early next year, but because of the purchase price disadvantage and the relative fuel efficiency of the existing petrol engines, Mazda only expects it to account for 10 per cent of sales.

The media was let loose in this ahead of its launch and it has plenty of torque so it doesn't need a lot of gear stick stirring, making for a relaxed driving experience - Mazda might actually sell more of these than they think.

With Mazda's habit of installing a go-faster engine at some stage, don't rule out a hotter Mazda2 to come.

On the road the Mazda2 feels calm and assured, riding on a modified version of the previous Mazda2 chassis with fully independent MacPherson front struts and a torsion beam multi-link rear axle.

It delivers a nice balance, flowing well over the ground and soaking up lots of the bumps, which has become a Mazda trait, with a good mix between comfort and sport setting on the suspension.

Working in conjunction with the electric assisted rack and pinion steering, the Mazda2 has a good response at the wheel and is stable through the corners while producing a tight 4.9-metre turning circle.

Braking comes from ABS with Brake Assist and EBD in standard format with Sport versions being supplemented by dynamic stability control and traction control.

Entry level to the Mazda2 line-up is the TS grade, but it certainly doesn't feel like a bargain basement model as Mazda packs quite a lot in for the money (making it cheaper than many of its rivals).

Specification includes front airbags, remote central locking with deadlocks, electric front windows, MP3-compatible CD radio, Thatcham category 1 alarm and immobiliser and electric door mirrors.

Mainly driven by price and specification, Mazda expects the 1.3 TS2 to take more than half of all Mazda2 sales.

This comes fitted with 15in alloy wheels, side and curtain airbags, electric folding door mirrors, four audio speakers, steering wheel-mounted audio controls, leather steering wheel and gear knob and air conditioning.

Heading the range and accounting for 25 per cent of the take-up will be the 1.5 Sport.

As well as the bigger engine this adds in items such as a sports styling kit with bigger front bumpers, side skirts and a rear tailgate spoiler.

To this is added 16in alloy wheels, cruise control, fog lights, electric windows, trip computer, speed alarm, six audio speakers and climate control air conditioning.

A lot for less than £12,000.

The Mazda2 is priced at £8,499 for the TS with an extra £1,500 buying the TS2 and a further £1,80 securing the Sport.

Mazda is aiming for conquest sales with the new Mazda2 now that it is a bigger package and it is hoping to attract younger buyers with its more stylish appearance. And they could just do very well with the new model.

It feels well built, has competent handling and offers spirited performance.

Crucially, it's also competitively priced.