SUBARU is introducing an entry-level version of its Impreza.

Called the 1.5R Sports Wagon, and available this week, the five-door-only model is a permanent member of the Impreza range and costs £12,495 on-the-road.

This is despite standard equipment which includes symmetrical all-wheel drive with a dual-range, low-ratio transfer gearbox, alloy wheels, climate-control air-conditioning, radio/cassette/CD player, front and rear electric windows plus driver, passenger and side airbags.

The new Impreza 1.5R - which has a new 105 horsepower boxer' engine - is only £500 more than the most basic Ford Focus - the five-door 1.4 Studio, which has a 79 horsepower engine.

And apart from lacking four-wheel-drive, the Ford also omits alloy wheels, air-conditioning, rear electric windows and a CD player.

Subaru (UK) managing director, Peter Kinnaird, said: "This new model opens up a whole new market for us appealing to two kinds of customer.

"For example, there will be those who need the reassurance that only all-wheel-drive traction can give. Others may have always wanted to enjoy the outstanding roadholding and quality engineering provided by the Impreza but do not need the performance of the 2.0R and turbo models."

Subaru also hopes to appeal to former owners of its smaller Justy model which ceased production in the late 1990s.

The last smaller-engined Impreza was the 1.6 TS Sports Wagon, introduced as part of the 2001 model year bug-eye' range.

At its introduction in November 2000, the 1.6 TS cost £13,950, £1,455 more than the new 1.5R.