THE year is 2010. In the latest shake-up of local government, Oxford City Council and Oxfordshire County Council have been abolished and in a move to devolve power to the grassroots, parish councils across the land control every aspect of day-to-day life.

Transport policy for an area stretching from Bristol to Basildon is in the hands of Nempnett Thrubwell parish meeting, which has just voted to ban any cars over 700cc, those producing CO2 emissions of more than 115 grams per kilometre and those with a fuel consumption of under 50mpg.

Drivers of the bug-eyed Mitsubishi i read the news unconcerned. For us it is business as usual. We can continue to zip around city streets and park in spaces smaller than you need for a new Mini, pack in four people and some luggage in a versatile four-door, four-seater and still zoom comfortably along motorways at 70mph.

How do you manage all that in such a small package? Fifty years of Japanese engineering experience in so-called K-cars is how. Japan is an industrial nation with almost zero natural resources.

So in 1949, the Japanese government started giving tax breaks to cars of certain size and efficiency, which became known as Kei Jidosha (Kei-Car, K-car) - Japanese for "light vehicle". They must be less than 3.4m long and 1.48m wide, with engines less than 660cc with no more than 64 horsepower.

In recent times, the K-cars have transcended their humble origins to become a cultural phenomenon.

Last year, K-cars accounted for 2.02 million of the 3.7 million cars sold in Japan.

The power for the rear-wheel-drive i, which has already achieved cult status in Japan, comes from a 57 horsepower, 660cc, three-cylinder turbocharged engine, which is mounted in front of the rear axle and linked to a four-speed automatic gearbox.

Competing against the Smart ForTwo, the i is narrower than other city cars, but its wheel-at-each-corner stance gives it an exceptionally long wheelbase, with corresponding space inside.

Exclusivity is guaranteed as Mitsubishi's first batch of 300 i cars in the UK sold in just 2 weeks and most of the second batch have also been snapped up.

Mitsubishi said that its research showed that 83 per cent of buyers were not previously Mitsubishi owners and seven out of ten buyers were in the South East of England. The company is planning to bring in 1,500 next year to meet demand.

The car is set to be exempt from the London congestion charge under proposals being drawn up for 2008.

Mitsubishi is already testing an electrically-powered version, which is expected to be on sale by 2010.

Auto facts Mitsubishi i

  • Price: £9,084
  • Ins group: Four
  • Fuel consumption (Combined): 54.6mpg
  • Top speed: 84mph
  • Length: 339.5cm/133.7in
  • Width: 147.5cm/58in
  • Luggage space: 8.7 cu ft
  • Fuel tank capacity: 7.7 gallons/35 litres
  • CO2 emissions: 114g/km
  • Warranty: 3 years/unlimited mileage