Our last encounter with the Lupo GTI saw it lose out to the all-conquering new Mini Cooper. However, it was far from disgraced. Quicker, similarly cute and surprisingly good fun, the Lupo proved to be the only rival that could stand toe-to-toe with the Mini in terms of ownership desirability and quality.

Now VW has spruced up its baby GTI by fitting a six-speed, close-ratio gearbox. You won't find one of those in a Mini. Still, one extra ratio can't make that much difference, can it?

This isn't one of those six-speeders with five normally spaced ratios and one super-long-legged cruising gear. VW has packed them in so that sixth is close to the old fifth ratio. The decision is justified soon after you set off. Red line in first, change up and you barely drop 1000rpm. Second to third is even closer and once again the characterful 1.6-litre howls enthusiastically into the red. Even in fourth and fifth the action is manic and addictive. The Lupo has been invigorated by this slick-shifting 'box.

Throttle response is much crisper and subjectively the acceleration is much stronger, the 16-valver pulling cleanly from 2000rpm and with real vigour over 3000. Obviously the tightly stacked gears mean that there is more for you to do, but that only makes you feel more involved in the action. Gunning the Lupo down a twisty B-road is great fun. It may lack the big car feel and ultimate composure of the Mini, but makes up for it in sheer brio. And its engine is superior to the Mini's in every way.

Dynamically, it's business as usual ΢€“ crisp turn-in, dramatic body-roll with dogged grip, and steering that's better than most VWs but lacks detail feedback and weights up markedly under full acceleration. Patchy roads unearth a tendency for the nose to follow ruts and cambers but it's never a big problem and adds to the Lupo's frantic racecar-on-stilts feel. And it'll happily lug around town or cruise at motorway speeds all day long.

The Lupo GTI was always a good car and is now improved. It carries the GTI mantle with greater conviction than Polo or Golf and it's a quality item. For those put off by the waiting list for the Mini the Lupo is definitely worth a look.