The latest addition to the Fiat range is a four-wheel drive version of their multi-award winning European Car of the Year 2004, the compact Panda.

About 10,000 units of the mini-sized five-door Panda will be sold in the UK this year, with at least 1,000 being made up of the new 4x4 model, says Fiat Auto UK.

Roland Ellison, Fiat's UK product manager, said: "We estimate we will sell at least 1,000 of these new models, but the factory will build whatever numbers we want. I would like to think we could sell double that amount.

"We have two target audiences, the rural market where 4x4 practicality is important, and the urban market, where style is the main priority.

"Currently UK Panda owners are in the 40-60-year age bracket, with a slight female and urban-use bias. We've been surprised that we have sold more new Panda models to people where the vehicle is used as the 'first' car.

"Because of its urban chic chunky styling, which gives the Panda 4x4 road presence, the elevated driving position with interior space and flexible practicality and its 4x4 status, we think this new model will attract younger buyers both male and female."

Priced at £9,195 on the road, the five-door Panda 4x4 is £1,000 more expensive than the previous top of the range 1.2 Eleqanza two-wheel drive model.

It is fitted with the same Euro IV compliant, 60-horsepower, eight-valve petrol engine, mated with a five-speed manual transmission, with permanent four-wheel drive. In normal road condition, 98 per cent of the drive is through the front wheels but this changes automatically to a maximum 50-50 front-to-rear wheel drive.

The suspension has been toughened and underbody protection plates fitted.

The Panda 4x4's features include twin front airbags, stereo radio/CD, anti-lock brakes, alloy road wheels, foglights, roofbars and body styling kit.

Fiat first launched a Panda 4x4 model in 1983. This was the industry's first production, transverse-engined small car with a four-wheel drive train.

Fiat has also added a diesel-powered model to the Panda range, the 1.3-litre, 16v, MultiJet Dynamic, priced at £7,895. Fiat claims this 70 horsepower Euro IV compliant engine is the smallest and most advanced common rail direct injection engine in the world.

There are plans to introduce a diesel-powered 4x4 Panda model in left-hand drive countries in October, but not in the UK.