We could all feel the presence of that famous elk at the launch of the new Mercedes-Benz A-class last week. When the original model was introduced seven years ago it got off to a disastrous start. Some Scandinavian journalists conducted their standard “elk test” — that is, swerving sharply to avoid an imaginary animal that might have wandered into the road — and managed to roll the car.

A stunned Mercedes-Benz went into damage limitation and quickly added an electronic stability control program to keep all four of their baby Merc’s wheels on the ground. Nevertheless, the press had a field day at the company’s expense.

Seven years on Mercedes is having a last laugh to the tune of 1.1m sales of the A-class. And the corporate embarrassment surrounding the elk episode has faded so far that Mercedes-Benz even felt brave enough to bring out a huge stuffed-toy elk as a joke at an early preview of the new car.

Very funny, we all thought, but it was lost on nobody that the very first thing Mercedes chose to tell us about the new A-class was how great the latest generation ESP (electronic stability programme) is. The pain lingers, plainly.

The company was also candid about the original scepticism that greeted the arrival of such a diminutive — and relatively cheap — Mercedes. Their cause wasn’t exactly helped by early criticisms of the quality of build and materials that went into the car. This time, they say, it is more “grown up”.

The A-class’s dimensions have grown, too, with an extra 9in of overall length and 1¾in of width. It really does look like a more substantial car, especially when you see it side by side with the old A-class.

The other big news is that buyers can specify a three-door or five-door version. The three-door’s a really funky looking thing and should broaden the appeal of the A-class in the direction of people currently wedded to Audi A3 and VW Golf three-door models.

Mercedes-Benz is also keen not to put us off with a big price hike, with early indications pointing to an increase of about £600 over each equivalent old model. That will mean prices starting around £14,400 and ranging up to £19,000. And, say Mercedes spokesmen, we’ll get even more standard kit for the money.

Even the most basic model will come equipped with air-conditioning, electric windows, a CD player and speed-sensitive power steering. A large model range goes on sale here next February, with three diesel-engine options ranging from an 82bhp 1.6 litre through to a 109bhp 1.8 and a quite punchy 140bhp 2 litre unit. There are four petrol engines: a 95bhp 1.5 litre, a 116bhp 1.7, a 136bhp 2 litre and a range-topping 193bhp 2 litre turbocharged powerhouse.

And now the good bit. Mercedes really couldn’t afford to get this one wrong and it hasn’t. With a simpler, more robust and geometric dash layout, the A-class has a quality feel in the cabin that’s been missing on some more recent efforts.

The use of “soft touch” materials makes the fingertip experience more Merc-like, it looks well constructed, and the switchgear has a nicely refined, solid action to it. There’s more space, too, with a wider cabin overall and over an inch of extra kneeroom for rear-seat passengers. It’s an airy, comfortable and quiet cabin to spend time in.

The A-class also takes a pretty serious tilt at “versatility”, which is the marketing word du jour. In three-door guise you can remove the rear-seat squabs and put them under the boot floor so that the rear seat backs fold perfectly flat.

But the five-door does the trick that Mercedes is most proud of. With the optional Easy-Vario-Plus system, Merc says, you can turn the A-class into a “goods carrier”. It allows you to remove all of the seats, including the front passenger one, in about three minutes flat. It’s a neat, but pretty pointless, trick. Would you really use your new Mercedes for a job more suited to a knackered daily-rental Transit?

No, you wouldn’t. And if versatility really is your thing, you’d need to consider what alternatives such as the excellent seven-seater Toyota Corolla Verso offer against the A-class’s maximum five seats.

We tried the petrol 2 litre and diesel 1.8 and 2 litre engines. As is becoming so much more common these days, it’s the diesels that impress most with their relaxed, responsive punch and frugal ways with a gallon of derv.

Dynamically, the new A-class is very good to punt fast down a twisty bit of B-road. With adaptive-damping suspension that reacts to hard cornering by stiffening up, but which softens out for a good ride when you’re not pushing, the A-class offers a neat compromise between ride and handling. Steering feel and feedback is good, too, although the variable power assistance gets lighter than I’d like at lower speeds.

I suspect that for Mercedes insiders this is a much more important car than we might realise. It’s a chance, seven years on, to show the world that the Stuttgart boys can launch a new car without teething troubles. If only elks could applaud.

VITAL STATISTICS

Model: Mercedes-Benz A180 CDI
Engine type: Four-cylinder, 1991cc
Power/Torque: 109bhp @ 4200rpm / 184 lb ft @ 1600-2600rpm
Transmission: Six-speed manual, front-wheel drive
Fuel/CO2: 54.3mpg (combined) / 131g/km
Performance 0-62mph: 10.8sec / top speed 115mph
Price: £16,295 (estimated)
Verdict: Build quality and dynamics show Mercedes has it right this time

THE OPPOSITION

Model: Volkswagen Golf 1.9 TDI, £14,595
For: Strong image, lots of cabin space, very good to drive
Against: Boring and a bit predictable, entry-level models have no air-conditioning

Model: Audi A3 1.9 TDI, £16,730
For: Best-looking car in the class, quality build, good space
Against: A tad expensive, handling and steering feel a bit dull