Much to the mirth of my chums in the motoring industry the only modern car I own is very probably the oldest A-class Mercedes in the country. As a clobber-heavy family of four living in a crowded London street we need our car to be both big and small, and six years ago the A-class was the only act in town. It’s shorter than a Ford Ka yet has more room inside than many luxury cars. I thought it was a miracle then, and I still do.

Years later, the rest of the world has woken up to this quiet revolution. Manufacturers have twigged that while creating extra interior space by making cars longer and wider always brings associated evils, using the third dimension brings no penalty at all. A higher roofline means the occupants can sit more upright, so their legs descend at a steeper angle and they need less legroom, in turn liberating space at the front and back.

Now this smart art has filtered down to the realms of the compact hatchback, where cars such as the Honda Jazz and new Mitsubishi Colt create superbly spacious interiors from determinedly diminutive exteriors. And the Renault Modus is one more variation on the theme, albeit given an interesting spin or two to maintain what is perennially described in motoring magazines as “Gallic flair”.

Renault claims class-leading interior room for the Modus but this is not what most grabs your attention. The danger with such cars is that their height can make them look top heavy and awkward, but mindful of the fact that the utterly outdated though still cute Clio and Peugeot 206 remain Europe’s bestselling small cars, Renault’s design team strove to keep the Modus funky and modern. It has done a good job.

Likewise the cabin is attractively designed, even if many of the materials used are pretty low-rent. The dash is uncluttered, though I wish Renault would desist from using a centrally mounted digital display instead of conventionally located dials. Renault points out that this way everyone gets to see how fast you’re going, but the diehard old traditionalist in me still wonders if putting the speedo nearer the passenger than the driver is good old Gallic flair or just plain silly.

Where Renault’s creativity has worked wonders, however, is in the back and boot. The size of each can be adjusted to find the optimum balance between leg and luggage room by sliding the rear seat fore and aft. Moving rear seats are no longer unique in this class but these have another trick left in the hat. By pulling a handle to the right of the seat bench, the centre seat squab folds away and the outer two squabs move inboard.

Turning a five-seater into a four-seater sounds daft, until you learn that this enables the rear seat to be pushed even further into the boot. So if you only need to carry four and don’t have much luggage, those in the back enjoy simply ludicrous amounts of legroom, and tall parents in the front can push their seats back as far as they like. On a typical school or shopping run, the advantages are obvious.

Other clever touches abound. There are storage units under the floor, under the seats and even under the front passenger’s seat cushion, while for an extra £250 you can equip the tailgate with the so-called “boot chute”, effectively a door within the door but hinged at the bottom like an old Mini, allowing shopping to be slid into the boot when the car’s parked in a tight space.

The Modus is rather less impressive once under way. The lofty driving position would be fine were the steering column telescopic and mounted higher but, as it is, it’s a bit too bus-like for tall drivers. Also, having almost laughed my way into a hedge driving a Nissan Micra cross country, I’d expected much of the Modus’s handling as it shares the same platform; but I soon realised I was out of luck and laughs. The steering has little feedback, while the suspension is tuned solely for ride quality, which is generally if not uniformly impressive.

The Modus is available with a range of engines from 1.2 to 1.6 litres. I drove the 1.5 litre 80bhp diesel and 1.6 litre 113bhp petrol. Of the two, the diesel is preferable by far: the Modus is not the kind of car you’ll want to drive fast anyway, it’ll return more than 60mpg and the petrol motor has a horrid boom at high revs. Company drivers should wait until the new year when diesels that meet the new Euro IV emissions tests (and are therefore exempt from the 3% tax surcharge) come on stream.

Most customers will be more interested in the car’s static qualities, low running costs and its good looks than its modest on-road charms. Combined with Renault’s reputation for building great small cars and keen pricing, it will doubtless deliver the success it deserves. Light steering, a tight lock and compact dimensions (it’s even shorter than a Clio) make it a winner in town, too.

It amounts to a car that rivals the best in the class. A little more spirit on the open road and it would have shown them a clean set of heels.

VITAL STATISTICS

Model: Renault Modus 1.5dCi 80 Expression
Engine type: Four-cylinder diesel, 1461cc
Power/Torque: 80bhp @ 4000rpm / 136 lb ft @ 2000rpm
Transmission: Five-speed manual
Fuel/CO2: 61.4mpg (combined) / 122g/km
Price: £10,850
Verdict: An effective family runabout, if not huge fun to drive

THE OPPOSITION

Model: Honda Jazz 1.4i SE, £10,500
For: Excellent packaging, good looks, fine engineering
Against: Poor ride quality, interior lacks flexibility

Model: Mitsubishi Colt 1.5 DI-D, £11,499
For: Practicality, looks, good performance
Against: Quite expensive, some cheap cabin fittings