The new generation Ford Focus is both bigger, better built and even more entertaining than the outgoing Focus. Ray Hutton drives one of the early examples in Italy for this first drive report.

The Ford Focus was always going to be a difficult act to follow. It is not often that a car gets to the end of its life still leading the pack but that's what the Focus has done. It has been Britain’s top seller since soon after its introduction in 1998 and is recognised universally as the best-handling car in the family hatchback class; it was named Car of the Year on both sides of the Atlantic.

They could make it a bit bigger - it is odd, but cars always grow from one generation to the next - and improve the quality of the furnishings but could Ford's engineers make another step forward in the way the Focus drives? I was doubtful. I shouldn't have been. Having driven several versions of the new Focus on the Lommel test track and on endlessly winding roads in Italy, I can report that the best has got better. Rivals had begun to catch up with Focus; now it has moved ahead again.

In all, the Focus remains fun to drive but is more refined and feels more solid than before. That was intentional. Derrick Kuzak, Ford's development chief, says that his mission was to deliver 'premium quality at an affordable price'. It is also more solid in the sense that it has a stiffer bodyshell and thicker window glass and, with all the available safety equipment, weighs 100kg more than its predecessor.

Focus has a new set of engines. Only the base models' 1.4- and 1.6-litre petrol engines are carried over from the old car. There is a new Ti-VCT version of the 1.6 with variable valve timing, which is more powerful (115bhp) and more economical. The 145bhp 2-litre petrol engine from the Mondeo (designed by Mazda and now Ford's 'global 1-4') is sweeter than its predecessor. The 1.6­and 2-litre diesels come from Peugeot. These TDCi engines are already offered in the C-Max MPV but the 2-litre is quieter in the new hatchback. The 136bhp 2-litre diesel is the only version to have a six-speed manual gearbox; Ford's competitors offer six gears more widely.

The C-Max previewed the new Focus range last year, being the first Ford to be built on what it calls 'C1 architecture', shared with the Mazda 3 and Volvo S40/ V50. It also set the new style, smoothly rounded where the old Focus had hard edges but with a few cues - like the high vertical tail-lights - to connect with its predecessor. The new models - nearly 17cm longer and 5cm wider - make the original Focus look narrow and old-fashioned but have lost its distinctive style. After a period of more radical design, Ford has fallen back to conservatism. I think that's a pity and, given the sales success of the original Focus, it may be a mistake. The European market is increasingly attracted to something different - like the bustle-back Renault Megane.

I have no such doubts about the new interior, although that is also more conventional than before. The Volkswagen Golf and the latest Opel Astra have raised the standard for materials, fittings and finish inside family hatchbacks. The Focus facia is now a soft-feel plastic moulding and the layout and presentation of instruments and controls is neater and more convenient. Ford has introduced some lighter trim colours, including blue as an alternative to the ubiquitous black for the upper surfaces.

Safety equipment available includes side curtain airbags as well as the now-usual front and side airbags.

The new Focus offers a series of features that have migrated from bigger and more expensive cars like a. navigation system with a large colour display screen, electrically-adjustable pedals, adaptive (swivelling) headlamps, keyless locking, voice controls, and Bluetooth mobile phone connection.

The size increase means more shoulder room in the front and provides a little more space for rear passengers and in the boot. The extreme slope of the three-door's 'fastback' roof is an illusion - it has the same amount of rear seat space as the five-door.

Three- and five-door versions go on sale in Europe in November. A five-door Focus estate wagon will follow shortly afterwards and a four-door saloon later in 2005. Those look much better than their predecessors, which were afterthoughts from the hatchbacks. The wagon has a lower and sportier line than before (but the same luggage volume) while the four-door - previewed at the Beijing Motor Show earlier this year - resembles a slightly smaller Mondeo.

The saloon is not a big seller in most parts of Europe but will be the mainstay of the new Focus range in the rest of the world. Incidentally, the 2005 Ford Focus for America is no longer the same car as that introduced in Europe. For cost reasons – in the US the Focus is a cheap economy car ­Ford has chosen to restyle the old model and eschew the new technical developments.