A SMALL car like the Daihatsu Sirion always makes good sense in a built-up city like ours. But it takes on a new shine when a litre of petrol costs $2.

The Sirion is now available with a 1.5-litre engine, the same double-overhead cam powerplant with variable valve-timing found in Daihatsu's funky Materia.

The engine that first appeared in the hot-selling Terios' engine has been tuned up slightly for the compact sub-compact.

If you talk to owners of the Terios, you will learn quickly that the car stands tall among SUV-like vehicles singularly for its thriftiness. The car will cover 11 to 12km on a litre on a mixture of highway and city driving.

In the smaller and lighter Sirion, the same engine accomplishes 15km on a litre.

The environmental implications of such an efficient car is clear, but let's not kid ourselves - if we were green, we would ride a bicycle.

We own a car because we love to drive. Yes, even those road hogs who keep to 80kmh on the right lane of the expressway. In their own twisted ways, they love to drive (or at least the idea of driving).

The 1.5-litre Sirion does not disappoint on that front. It certainly packs more zest than the 1.3-litre version introduced two years ago, with barely any penalty on consumption.

Like the Suzuki Swift - the other similar-sized and hugely popular car - the Sirion 1.5 has a well-engineered chassis to exploit the extra horsepower afforded by the bigger juicer.

It pulls away from the lights effortlessly, it has lovely steering response and it remains confidently planted even when you drive it like it's a hot hatch.

Even though it will not win any races, its breeziness is addictive. You find yourself heavy-footing the car without care or guilt.

The car impresses with its superb insulation against noise and vibration. Its engine is audible when extended, but never harsh.

Its sub-tonne weight has another advantage: effortless braking.

Even though the car is generally tinny, its doors close with a nicely cushioned thump.

The only downside is its plasticky and austere cabin. It is several notches below the Swift in this respect. But it also costs $5,000 less.

The car is smaller than the Swift but is more cleverly packaged. Its boot access is wider and its rear seats can be folded flat easily.

It also has more cupholders than a premium German car we drove recently. And its wipers operate silently - something you take for granted in a Japanese car, but not in the Continental makes.

So, if you are in the market for a zippy car with a small thirst and relatively modest price tag, the Sirion 1.5 is worth considering - even if it is not the newest car on the block.