WITH its 1.5-litre turbocharged and intercooled engine, uprated suspension and strengthened bodyshell, the Mitsubishi Colt CZT offers the prospect of scintillating performance at a very cost-competitive price.

Obvious rivals are the Ford Fiesta ST, the SEAT Ibiza FR and the Peugeot 206 GTi but the Colt, which is built in the Netherlands and not Japan, has the power and performance to out-run them all.

The bespoke engine develops an impressive 147bhp and 155 ft/lb of torque at a relatively lowly 3,500rpm.

Serious stuff, and a peep at the spec sheet reveals why: the cams are hollow for extra weight saving, the pistons have a low friction coating and the timing-belt tensioner is a hydraulic design.

Place that engine in a lightweight body and you have a recipe for serious performance. The CZT comfortably blows away all its rivals with a 0-60 mph sprint time of just 7.2 seconds and a top speed (where legal) of 131mph.

It looks good, too.

The three-door Colt was designed from the outset to be a stand-alone model. Although the Colt project is a joint venture with Smart (which spun the Forfour out of this platform) European engineers at the Mitsubishi design centre in Germany had the final say on how the threedoor looked.

And they didn't do a bad job, although I reckon the press pack that accompanied the test car was stretching things a bit when it described the CZT as 'coupe-like'.

The Colt is a perky little design, cheeky almost, but the roofline doesn't swoop low enough to give it a genuine sporty look without the addition of a spoiler kit.

From the front it looks great and the high roofline means even rearseat passengers have plenty of headroom.

Compared with a standard Colt the CZT has a distinctive bumper and sports mesh grille, 16-inch sports alloy wheels shod with wide, low-profile tyres, a sports exhaust and a large rear spoiler. Inside you will find drilled aluminium pedals just like in the Mitsubishi Lancer Evo rally car, white-faced instrumentation and sports bucket seats.

A CAT 1 alarm/immobiliser provides peace of mind.

The three-door is shorter and lower than the five-door but retains the larger version's generous wheelbase (2500 mm) and wide track.

It's a highly-efficient shape. Aerodynamically, the CZT is better than a first-generation Toyota Yaris and a Peugeot 206.

This has benefits, not only for highspeed cruising, where the car is distinguished by the lack of wind noise, but also fuel consumption.

The cabin, too, has been given a thorough going over.

Before the Colt reached these shores the light beige fabrics, wool accents and front bench seat of the Japanese-market five-door were ripped out and replaced by darker tones and translucent materials that are all the rage in these iPod-centric times.

At night the translucent plastics allow the centre console, audio and heater controls to glow in the dark.

Mitsubishi also makes a lot of the new plastic texture used in the fascia which, it claims, lends the cabin a more up-market feel.

Genuine soft-feel material would have done the job more efficiently but, one assumes, would have also bumped up the cost.

What's for certain, though, is that the CZT doesn't feel like a bargain basement special.

If your memories of small Mitsubishis were of the pretty awful plastics found in Colts and Lancers from a decade ago you won't believe how much things have changed.

The hooded instruments are both more efficient and sportierlooking when compared with the five-door model. Leather graces the tilt-adjustable steering wheel and gearknob, while silver paint has been daubed about to interesting effect on the switchgear.

The front seats are nicely bolstered and provide plenty of lateral support, handy for when you take those B-roads at a decent lick.

Mind you, form has not been allowed to dictate function. The controls are all laid out with typical Japanese attention to detail and the massive windscreen affords a commanding view of the road ahead.

There's enough room in the back for a couple of adults but the front seats don't return to their original position, which is annoying.

Parents with children aren't an obvious market demographic for this model but should a young dad buy a CZT he'll be relieved to be able to inform his wife that ISO-FIX child seat anchorage points are fitted as standard. Parents wishing to carry junior in the front can de-activate the passenger side airbag.

Another neat feature is the anti-trap mechanism in the window winders which alleviates the risk of trapped little fingers.

The boot is pretty cramped (just 235 litres max) with all the seats in place. If you need to carry a bit more than a week's worth of shopping the rears tumble forward. There's a 60/40 split so the CZT can carry three people and still cart a fair bit of luggage.

Surprisingly, the engine note doesn't match the manic performance. There's nothing sporty about a dull drone so it's better to change up through the slickshifting Getrag gearbox.

The brakes are nice and sharp, plus there's the added reassurance of anti-lock should things get a bit too hot. Electronic steering is surprisingly heavy for such a small car, not a bad feature in a Japanese hatchback, where the opposite is usually true, but there's a fair bit of body roll despite alterations to the suspension and the fact that the threedoor model sits lower to the ground.

Surprisingly, Mitsubishi isn't billing the CZT as a high-performance hatchback despite its giant-killing acceleration.

That mantle will undoubtedly fall to the Ralliart Version R, a limited-run Colt inspired by the world's wildest saloon, the Lancer Evo.

Although a step back from the World Rally Colt original planned, the Version R benefits from a macho body kit, an Evostyle front bonnet and 16-alloy wheels.

The chassis is more rigid and special shock absorbers are fitted but the engine remains pretty much the same.

That version promises to be the friskiest Colt of them all but you'll have to pay the price. If it comes to these shores the Version R won't give you much change from £15,000.

For most of us I reckon the CZT will be all the Colt you need.

Engine: 4-cyl, 16-valve, 1,468cc Power: 147bhp @ 6,000rpm Torque: 155lb/ft @3,500rpm Top speed: 131mph 0-60mph: 7.2 seconds For convenience: Sports seats, leather steering wheel, electric windows with anti-trap function, radio/CD with six speakers For safety: Twin airbags, side and curtain airbags, anti-lock brakes, electronic stability programme (note: this cannot be turned off).