FIAT'S new generation Panda city car will cost from £8,900 when it goes on sale at the end of this month.

At the top end of the range, a highly specified version equipped with Fiat's 1.3 MultiJet 2 turbodiesel engine will cost £12,250, a tab that includes air conditioning, roof rails, Start&Stop and alloy wheels as standard.

It will be available from launch with a choice of  69bhp 1.2-litre and 85bhp 0.9-litre TwinAir petrol engines plus a 75bhp 1.3-litre MultiJet 2 turbodiesel and in three trim levels – Pop, Easy and Lounge.

With more than six million examples sold, the Fiat Panda has long proved its popularity - and this latest, longer, version can comfortably accommodate up to five people and is equipped with one of the largest luggage compartments in its segment.

Standard kit in the entry level Pop includes electric windows, central locking, Dualdrive electric power steering, four airbags and body colour bumpers while the options list includes ESP, roof rails and black pastel paint.

Easy trim versions add remote central locking, air con, roof rails and a higher grade audio system, while Lounge gets heated electric mirrors, 15-inch alloy wheels, front fog lamps, body coloured mirrors and door handles, and side mouldings.

Safety measures comprise up to six airbags, double seatbelt pre-tensioners, an active anti-whiplash head restraint system, and available ESP.

In addition, a new Low Speed Collision Mitigation system will become available for the first time.

It uses a laser sensor on the windscreen to scan a space a short distance in front of the vehicle to determine the risk of a collision and is capable of automatically activating emergency braking at speeds less than 18.6mph.

Options will allow customers to style their own car courtesy of 10 exterior colours and six interior/dashboard combinations.