It’s a rare thing indeed when a car manufacturer enters a previously untargeted market segment, but that’s exactly what Seat has done.

Renowned for its highly successful range of good value hatches which range from cool, through warm, to very hot, the company has pitched in to the upper-medium segment sector for the first time. And its new product, the Exeo, is destined for considerable success.

It’s based on the outgoing Audi A4 platform, but Seat has added a considerable bit of sparkle to the car and it’s paid off handsomely.

Although it was a well-built, reliable and much-loved car, the previous A4 received a lot of criticism, some of it unjustified, over its handling.

Now it so happens that Seat knows a thing or three about handling and the new Exeo is perhaps the car the A4 should have been.

As in other models in the Seat family, there are four trim levels in the Exeo range, S, SE, SE Lux and Sport.

Even the base S model is well equipped, with standard gear including dual zone climate control, Bluetooth phone connectivity, USB port, all-round electric windows, alloys, twin exhaust pipes, multi-function steering wheel, six airbags and plenty of computer safety systems.

Despite the A4 underpinnings, the car is visibly a Seat, especially the new trademark ‘Arrow Design’ front end.

The cabin is well-finished with good quality materials and decent switchgear, (as it should be – the dash is from the Audi parts bin) and there’s an attractive ‘piano black’ trim adding to the premium feel. Rear legroom is not great, but with a predicted sale of 80 per cent to fleet buyers that’s perhaps not the first priority.

The Exeo comes with three two-litre engine options, two common rail diesels and a potent petrol unit. The launch cars were all equipped with the 143ps, 236lb/ft diesel option, and a very fine unit it is too.

It goes about its business in a quiet and efficient way, is torquey from low down in the rev range and matches the well-judged ratios in the standard six-speed gearbox well.

All this equates to an impressive official fuel consumption of 51.4mpg combined and low emissions of 143g/km. That’s one of the lowest in the class and equates to just £125 a year in excise duty.

The standard Exeo is an engaging drive, with good steering, although there wasn’t enough feedback for my taste, a fairly slick gearbox and good throttle response. There’s little turbo lag, but I thought the brakes were over-assisted and on the harsh side. It’s nimble for its size and can be flung around a fair bit, with creditably little body roll despite the compliant ride (thanks to bespoke spring and damper settings) and I’d be more than happy covering long distances.

Pricing is very competitive, ranging from £17,740 for the base but very well-equipped S model in 143ps diesel guise to £21,340 in 170ps diesel SE Lux format. There’ll also be a lively 200ps turbo petrol model costing £19,410.

Seat only aims to sell between 1,500 and 2,000 Exeos a year, but I suspect it’ll need to revise that figure upwards.