KIA, it would seem, can do no wrong at the moment.

Burgeoning UK sales which have driven a huge hole through the record books, while the crowning of the company as manufacturer of the year in the Car Dealer Power 2016 Awards has only imbued it with more confidence as it prepares to launch a clutch of new products next year.

Now, with a pledge to reduce the average CO2 emissions of its range by 25 per cent before 2020, it has launched the Niro, the company's first hybrid model in the UK.

Kia may have been late to the hybrid party, but the Niro will soon be followed by a plug-in hybrid version of the Optima saloon and tourer to sit alongside the all-electric Soul EV in the green room.

A compact crossover, the Niro is based on a new platform and promises average fuel economy of up to 74.3mpg and CO2 emissions starting at 88g/km.

It also has a new powertrain featuring a 1.6-litre, 104bhp petrol engine and a 43bhp electric motor driving through a six-speed dual-clutch automatic transmission.

Before we go any further, let's just clarify that mpg figure, which relates to the two lower-spec versions riding on 16-inch alloy wheels. Opt for the two higher-spec versions riding on 18-inch wheels and the average mpg figure drops to about 64mpg - still very impressive but quite a trade-off in savings at the fuel station.

Having said that, Kia might have been a little conservative in its estimates. At the launch event one light-footed motoring journalist returned a figure of 92mpg on the smaller wheels.

High-strength steel and aluminium has been employed in the body construction to keep down weight, but step into the cabin and there are no signs of fuel-saving measures. You are greeted by a sophisticated interior with high-quality fit and finish and the latest connectivity and active safety technologies, including wireless smartphone charging, autonomous emergency braking, smart cruise control and lane-assist, blind spot and rear cross traffic warning systems.

The four-strong model range offers ample room for five people plus their luggage. At 4,355mm long, 1,805mm wide and 1,535mm tall, it sits between the cee'd hatchback and the new Sportage SUV in size.

The Niro looks both smart and capable, featuring a wide stance, long bonnet, short overhangs and a rising shoulder line. Bold wheel arches and body cladding beneath the front and rear bumpers, along the sides and around the wheel arches emphasise the tough side of its character.

Having driven the car on both 16 and 18-inch wheels, I would opt for the larger wheels for a better ride, but that's not to say that the smaller wheel disappoints.

The Niro, which utilises fully independent suspension, provides a smooth and comfortable ride with imperceptible switching between gears and energy. While it pairs a petrol engine with an electric motor like the majority of hybrids, drive to the front wheels is through the dual-clutch automatic gearbox rather than the more commonly favoured continuously variable transmission.

It can operate in all-electric mode for short distances when setting off, under gentle acceleration and when descending slopes or braking.

The four-model line-up begins with grade 1, which includes dual automatic air conditioning, an automatic windscreen de-fogging system, LED daytime running lights, a 3.5-inch TFT supervision cluster, electric windows, a DAB radio, USB and aux ports and a trip computer.

Upgrading to level 2 introduces a leather-covered steering wheel and gearshifter, black cloth and leather upholstery, roof rails, privacy glass on the rear windows and tailgate, reversing sensors, an under-floor tray and rain-sensing wipers.

The step-up to grade 3 brings 18-inch alloy wheels, black leather upholstery, front parking sensors, heated front seats and steering wheel, a power-adjustable driver's seat and stainless steel scuff sill plates. This is all in addition to an upgraded audio system, larger navigation screen and wireless mobile phone charger.

The First Edition model is distinguished by its grey leather trim and white interior inserts, but also provides a smart key and engine start/stop button, heated outer rear seats, ventilated front seats and an electric tilting and sliding sunroof.