Like all the best ideas, the Citroen Picasso was a simple one. Create a keenly-priced but spacious mini people-carrier and watch them sell like hot cakes.

Families loved them. Indeed the second generation did well too even though it had tougher rivals to contend with.

Now there’s a brand-new C4 Picasso MPV, and once again it faces a difficult task. The competition is hotter than ever, and buyers are more demanding than ever too. Just having space isn’t enough these days. Buyers of mini MPVs now demand comfort, attractive designs and fuel efficiency in equal measures and this is a tough crowd to please.

This new C4 Picasso is a much more sophisticated vehicle, however. The key advance is that the C4 Picasso is the first of a series of Citroens to use the new EMP2 platform. Because of its modular design it can be lengthened to create a range of vehicles and it’s also been created to save weight.

New C4 Picasso is up to 140kg lighter than the previous model. Despite this, Citroen claims it is stronger and stiffer, which is good news for occupant protection in the event of a crash.

Good stuff, but it’s the outside that will get your attention first. C4 Picasso has a large glass area and slim LED headlights that help to create a more distinctive look. It’s no longer a capacious box on wheels.

It’s clearly related to the previous generation model but with more character. It gains from the impressively-stylish DS models elsewhere in the range.

This is an MPV however so it’s the inside that matters most.

The first thing you notice is the amount of light in the cabin, particularly with the glass roof, and the windscreen extends over the heads of the front seat occupants.

There are lots of clever features, such as an airline-style footrest for the front passenger and 40 litres of under-floor storage, while the rear seats are divided into three and fold easily to give lots of versatility. Citroen has also made a big noise about the layout of the dashboard, which does away with conventional instruments and instead gives you two large screens. The upper one can display all sorts of information as well as images uploaded from a USB stick (if you wish) and is configurable in numerous ways, while the lower one is a touchscreen and controls many of the vehicle functions. It all looks very smart and generally works very well, although sometimes you are required to push a button on the steering wheel to confirm a choice which can be confusing at first.

Under the bonnet there’s a choice of two petrol and three diesel engines, but it’s the 1.6-litre diesels that grab the headlines. The 115 e-HDi unit offers a useful blend of performance and economy. It’s as quick as you would need unless you’re in a big hurry but the prospect of 70.6mpg and 105g/km of C02 is impressive for a car that’s designed to be more than just a green machine.

But it is the C4 Picasso’s excellent ride that really impresses. It soaks up bumps well and without becoming too soft in the corners.

It behaves like a much bigger car. Press on and it hangs in but that’s not what it’s best at – instead sail along on the torque of the engine, enjoy the panoramic view out and let the suspension deal with all the road imperfections.

It’s good from behind the wheel and your multiple passengers will thank you for it too. Compared to its key rivals the C4 Picasso certainly looks smart, is well-equipped and impressively versatile.

It drives well, looks good and it is still competitively priced. It seems that Citroen could well have another success story on its hands.

Citroen C4 Picasso VTR 1.6 VTi 5-door PRICE: £17,500. Entry-level of a range costing up to £24,455. There is also the Grand Picasso (£19,915-£24,215) ENGINE: A 1,598cc, four-cylinder engine generating 120bhp via five-speed gearbox PERFORMANCE: Top speed 116mph, 0 to 60mph in 12.3 seconds COSTS: Combined 44.8mpg EMISSIONS: 145g/km INSURANCE: Group WARRANTY: Three years, 60,000 miles