The trouble with the Avensis is that it doesn’t have a USP. That’s not some fancy electronic device that applies the brakes if you find yourself in a skid but an old-fashioned marketing idea — the unique selling proposition. Toyota can’t find one for the new range so its advertising campaign emphasises quality.

The quality and reliability of Toyotas are good, everyone knows that. But quality isn’t exclusive to Toyota. Most medium-sized saloons and hatchbacks are now well built, nicely furnished and good to drive. The Ford Mondeo is probably the best, the Renault Laguna runs it close. The Nissan Primera is the most daring, the Citroën C5 the most comfortable and spacious. And, notwithstanding what others might say, the Vauxhall Vectra is a fine all-rounder.

So, you might wonder — as Toyota evidently does — where the sharply styled new Avensis fits in. It is closest in presentation to the Vectra, only just fails to match the Mondeo’s dynamics, but is better value than either.

Designed in Europe and built in Derby, the Avensis avoids the tell-tales of so many Japanese cars. It eschews phoney wood on the fascia, provides a standard Panasonic sound system that looks and sounds top class and has the taut ride and handling that we associate with the better European cars.

The engineer in charge, Suguya Fukusato, is proud of the no-expense-spared approach to its development. The new Avensis has nine airbags, brakes so big and powerful that only Porsche beats them in comparative tests and classy Lexus-like instruments that light up from a black panel. Fukusato says that the Mondeo was the benchmark for how it drives and the Audi A4 and VW Passat for the fit and finish. It doesn’t quite hit these targets but is a major step forward from the old Avensis.

There is the choice of four-door saloon, five-door hatchback and estate (Tourer, in Toyota-speak) with 129bhp 1.8 litre and 147bhp 2 litre VVT-i petrol engines or a 116bhp 2 litre D-4D turbodiesel. Toyota claims that this is the first complete range to meet the Euro 4 exhaust emissions regulations that come into effect in 2005, which means the D-4D avoids the usual 3% diesel penalty for company car tax. (There will be an even cleaner diesel by the autumn, the D-Cat, which will have a special catalytic convertor.) The Avensis engines are its weakest link, however. Achieving Euro 4 is good but the existing diesel is neither as sweet nor as willing as the Mondeo DCi or the Laguna dCi. Although the petrol engines are remarkably quiet at idle they are not as smooth as several rivals’ at speed.

There isn’t much wrong with the chassis. The Avensis handles crisply, body roll is tightly reined in and the ride is firm but comfortable. That said, a keen driver will prefer the weightier feel of the conventional hydraulic power steering found on the bigger-engined cars over the 1.8’s electric system, which is said to save power and fuel.

The biggest seller will be the hatchback, which adapts easily into a useful load carrier, but the Tourer makes more ingenious use of space, with two large compartments hidden under the load floor.

Although longer than its predecessor, the new Avensis is 4in shorter than the Mondeo but about the same size as the Vectra, and provides similarly adequate rear seat and luggage space. In this, as in most other respects, the Avensis is at or just above the class average.

So, all things considered, the best proposition the Toyota puts forward is high quality at a competitive price. At £13,995 the Avensis 1.8 T2 saloon and hatch are well equipped and significantly cheaper than their Ford and Vauxhall rivals. My pick of the range is the T3-X hatchback, which begins at £15,495. A similarly specified Mondeo would be about £1,000 more.

VITAL STATISTICS
Model Toyota Avensis T3-X hatchback
Engine type Four-cylinder, 1794cc
Power/Torque 129bhp @ 6000rpm/ 125 lb ft @ 4200rpm
Transmission Five-speed manual
Suspension (front) MacPherson struts, anti-roll bar;
(rear) double wishbones, anti-roll bar
Tyres 205/55 R16
Fuel/CO2 39.2mpg (combined)/ 171g/km
Top speed 124mph
Acceleration 0 to 60mph: 10.0sec
Price £15,495
Verdict Strong new contender in crowded class but leads only in quality and value