Recent announcements that Toyota, one of the world’s two biggest car companies, is about to make a loss means that every new model becomes important.

And for the British end of Toyota’s operation none is more vital than the new Avensis, which goes on sale here this month.

Designed and engineered in Europe and built at Toyota’s Burnaston factory in the UK, the main objective for the all-new, third generation Avensis has been to make it more distinctive and to move upmarket within the premium D segment.

To achieve a more European flavour, Toyota sent technicians to Japan to provide input and it was designed in France, although it is clear to see the links with the outgoing model.

As a result, Toyota’s new European flagship has a sleek, athletic design, more powerful, cleaner engines and enhanced equipment levels.

The new Avensis has a stronger and bolder face while the A pillar is moved forwards by 110mm and the C pillar is moved back by 50mm to give it a longer cabin appearance.

The new Avensis is only 50mm longer than the previous generation model.

The estate version retains the front from the saloon and continues the roofline at the rear, which gives it a harmonious rather than add- on quality. Cargo space in the tourer is more flexible, with cargo rails available to divide and secure separate loads.

Retractable rear seats have a one-touch folding mechanism to create extra space.

Inside, Toyota has gone for simple elegance dominated by a long, almost featureless, dashboard finished in textured plastics while the top of the range models get a nice centre console and door trim inspired by bamboo, which has a good quality feel in a mix between classic and modern.

The new-look instrument panel makes good use of the car’s width to emphasise the spacious feel of the interior.

It feels like a comfortable car, with a spacious and well-appointed cabin.

In UK, four grades will be available: T2; TR; T4 and TSpirit. Prices start at £15,760 with a £1,750 increase to get to TR, £1,500 extra to T4 and £2,000 to T Spirit.

Entry point is the T2 grade which features: air conditioning; six-speaker audio system with CD and MP3 file player (from disc); heated electrically adjustable door mirrors; electric front windows; seven airbags; electronic parking brake; a multi-information display; immobiliser and alarm plus remote central locking.

The best-selling TR grade builds on the T2 specification with the addition of: 17in alloy wheels; front fog lights; automatic air conditioning; audio system with Bluetooth; cruise control; automatic headlights and windscreen wipers; leather steering wheel with audio switch.

While many other brands have been creating special Eco models, Toyota has steered away from this and says that is because it is already packing lots of economy and green features into all models.

The 1.8 and 2-litre petrol engines can see fuel and emissions savings of up to 26 per cent compared to previous units with power rising by 20 per cent.

The new Avensis is bristling with the latest safety features which include; active headrests; emergency brake lights; steering assist; adaptive forward lights; lane departure warning and lane keeping assist; adaptive cruise control and pre-crash safety system.

In Europe, the success of the Avensis will depend a lot on the corporate market as fleet sales account for two thirds and in the UK this rises to 80 per cent, which is about the same as the class market split.

It should prove attractive to company drivers as it has among the highest residuals in the class and boasts the lowest company car costs based on fuel and tax benefits.

It also has low insurance ratings because of its high level of security features.