A hot diesel version of the new Hyundai i20 hatchback could make it into production.

The performance-orientated i20 would be the Korean maker's first step into the modern hot hatch market, but an i20 'GTI' could still fit into the range provided it stuck to the Hyundai budget philosophy.

"It's on the cards, and would be a boost to brand image in the UK," a product development insider told Autocar, although he added that no firm decision had been reached.

The warmed-over version of the i20 would use Hyundai's 1.6-litre diesel engine, which won't be offered otherwise in Britain. With the boost turned up, this unit could offer around 200bhp.

However, it will be vital for Hyundai to keep fuel consumption and CO2 emissions as low as possible if the proposal is to reach showrooms.

Autocar understands that the company would like to offer a warm performance hatch with sub-120g/km CO2 emissions, and aim it at younger buyers. It would be a direct and potentially cheaper rival for the Skoda Fabia vRS, and could start under £14k.

Hyundai says that, as the diesel i20 has a reasonably low kerb weight of 1222kg, it wouldn't need a great deal of power to turn in a sub-8.0sec 0-60mph time and post a 130mph top speed. But by using a reworked version of the frugal diesel, it could still offer ultra-low running costs.

The hot i20 would probably get larger 17-inch wheels, bigger brakes and a body kit, and it would ride lower to improve the handling. One of Hyundai's chassis development team told us that adjusting the i20's set-up for a sportier drive would not be difficult.

Last year, Hyundai went upmarket with its excellent i30 hatch-back. Now, the Korean company is back – offering a new supermini which it says will deliver big quality at low prices.

The i10 replaces the ageing Amica, and promises a class-leading specification, five-year warranty and starting price of only £6,495. It certainly looks tempting, but does it have the style and substance to take on rivals from Europe and Japan?

There’s no denying it’s generously equipped. Air-conditioning, four air-bags and an MP3-compatible CD player with six speakers are standard on the entry-level Classic, with the mid-range Comfort adding enough extra kit to justify its £600 premium.

There’s also a Comfort Auto model for £7,895, although the range-topper is the £7,595 Style, which has 15-inch alloys, a rear spoiler and a sunroof. All variants use a 65bhp 1.1-litre engine which returns 56.5mpg com-bined, and has low enough emissions to be exempt from the revised London congestion charge, due in October.

On the outside, the front is fine – even cute. From the door handles back, however, it’s clear that style has lost out to function on the five-door-only supermini. But the newcomer is well built, and there are no signs of cutting costs. Even the cabin – usually brittle and flimsy on budget models – is durable and robust. It’s also stylish, although the funky colour inserts on the dash and seats won’t feature on UK cars. Still, boot space is excellent and rear passenger room plentiful.

The best seat is the driver’s, where chunky controls enable you to exploit the weighted and responsive steering, progressive brakes and tidy gearshift. It’s not especially fast, but it’s fun.

In the city, great all-round visibility and responsive controls make man-oeuvres easy. And there’s no need to avoid motorways, either, because the Hyundai is happy in any lane.

The only real flaw is the i10’s rowdy powerplant. When it’s at the top of the rev range, it makes more noise than performance – particularly with the auto box – and on inclines, it can struggle. Thankfully, a new 74bhp 1.2-litre petrol unit arrives later in the year. Yet in every other way – from build quality to standard kit, and interior space to overall style – the Hyundai easily beats Kia’s £6,759 Picanto and the £6,245 Chevrolet Matiz.

It faces a tougher battle with some of the more established names. The i10 isn’t as athletic in corners as the £8,499 Mazda 2, and it’s not as cute as Toyota’s £7,195 Aygo. All the same, the i10 does a great job of showing how far the brand has come.

Price: £6,495

Engine: 1.1-litre 4cyl

Power: 65bhp

Transmission: Five-speed manual, front-wheel drive

Economy: 56.5mpg

how many miles was that 2 qts used in? Odd it goes fro 2 qts to none, but good for the car.

Is it possible that the additives in the Mobil 1 helped to fix any leaks in valve seals, or piston rings..?