Priced from £19,295 Release date November 2016

If small is beautiful, this Audi Q2 1.0 TFSI should be well worth a look. Not only is the Q2 the smallest SUV Audi has yet produced, but this model's 1.0-litre petrol is the smallest of its available engines.

Prices start at £21,360, meaning the 1.0 TFSI undercuts the equivalent 1.4-litre petrol and 1.6-litre diesel-engined Q2s by more than £2000. And perhaps more significantly, it's £790 cheaper than our current class favourite, the Seat Ateca 1.4 EcoTSI SE.

So, is this entry-level Audi SUV worth considering, or does it take downsizing a step too far?

2017 Audi Q2 1.0 TFSI on the road

Just a few years ago, if you were in the market for a fuel-efficient SUV, a diesel was definitely the way to go. However, with increasingly stringent emission regulations being imposed upon car manufacturers, the development of smaller, turbocharged petrol engines like the one in this Q2 has been relentless.

There is a slight hesitation when you first put your foot down, but once the turbocharger is spinning and the revs are beyond 2000rpm, the engine's power delivery is progressive and reasonably strong.

It helps that the engine comes with a six-speed manual gearbox – there's no automatic option – with well spaced ratios to make best use of the available torque.

Refinement also impresses, with the engine’s three-cylinder thrum almost imperceptible around town. True, it does start to intrude a bit when you accelerate hard, but things quickly settle down again once you're up to speed.

Variable steering that gets faster the more you turn the wheel cuts down on the arm twirling that's required when parking, while providing good motorway stability and an agile feel through bends. What's more, the Q2 grips well and resists body lean better than most SUVs.

The price you pay for this sporty handling is firm suspension that makes the ride rather unsettled along typical pockmarked urban roads – although it does stops short of being harsh.

2017 Audi Q2 1.0 TFSI interior

The Q2 may be Audi's smallest SUV, but you can easily fit a bulky pushchair in the boot, while the boot floor is adjustable, letting you have a deeper load space or a lower load lip.

Instead, it's in the rear seats where practicality suffers. Taller adults will find their knees are pushed into the front seatbacks, although children will still be fine.

Despite this Q2's tempting price, it has the sort of high-quality feel we've come to expect from Audi interiors. Meanwhile, the dashboard layout and infotainment system are simplicity itself.

You even get a pretty generous list of standard equipment; a DAB radio, Bluetooth, and a USB port are all included. And if you connect a smartphone through the USB, you can operate it through the car’s infotainment screen via Apple CarPlay or Android Auto.

Next: Audi Q2 1.0 TFSI verdict>