First drive: Fiat Panda Cross

That looks like a Panda 4X4...

It is, sort of. The Panda Cross is based on the 4X4, which sits below it in Fiat's triumvirate of Really Very Tiny SUVs.

There are three?

Yes. The Cross is the most capable off-road, the 4X4 slightly less so, and the Trekking is pretty much a standard Panda with chunky tyres and bumpers swathed in black plastic.

I see. So what's different?

New to the Cross is a system Fiat calls Terrain Control. Beneath the gear lever is a twisty knob that lets you pick from three different drive modes - Auto, Off-Road and Hill Descent Control (HDC).

Auto automatically distributes drive between the front and rear axles without any input from the driver, whereas Off-Road locks the Panda in four-wheel drive at speeds of up to 30mph. It engages the Electronic Locking Diff, disengages the traction control to improve grip on slippery ground, and uses the ESC to brake whichever wheel has the least traction and send the power elsewhere.

Beneath its swollen arches and redesigned bumpers, there's more underbody protection, raised air-intakes and 9mm more ride height than the already jacked-up 4X4.

Beyond the mechanical tweaks, there's some new interior and exterior trim.

How about engines?

Like all other Pandas, you can get the Cross with Fiat's peppy little TwinAir two-cylinder petrol turbo. Power's up by 5bhp to a mighty 84bhp, which means 62mph happens (just) in 12 seconds. It comes with a six-speed gearbox. First is a crawler gear - good off-road, less so merging onto quick roads.

There's a diesel too, a 1.3-litre MultiJet with 79bhp. It has a chunk more torque (140lb ft vs. 107lb ft), but it's noisier, slower, and more expensive than the TwinAir, so we'd steer clear.

Fiat claim the petrol, which starts at £15,945, will do 57.6mpg. The diesel, which is exactly £1,000 more expensive, manages a claimed 60.1mpg.

That's all very well, but can it actually go off-road?

It most certainly can. With a big poke of the throttle, the Panda scrabbles up surprisingly steep slopes. There's a moment of inaction as the power is metered out, and then an almost turbo-like whoosh as the rear-wheels bite and you fly over whatever obstacle it was you were trying to scale. For such a small car, it really is very impressive.

How about on-road?

Ah...the Panda's Achilles' heel. The steering is vague and imprecise, which is more of a problem at higher speeds than it is around town. It's a bit of a problem off-road too, as you can't really feel what the front wheels are up to, whether there's any grip. The ride is fairly smooth thanks to those fat tyres, but there's a prodigious amount of body-roll.

Should I buy one?

Probably not. The Cross is a charmingly capable, likable little car, but it's unquestionably over-engineered. We imagine very few people who buy this car will ever get anywhere near realising its true potential. If you really do need that extra grip, you may as well buy a 4X4 and save yourself £1,700 - you might not be able to climb such steep hills, or ford such deep puddles, but you probably won't even need to. If the more rugged looks appeal to you, however, we won't judge...