The StreetKa was first seen in production form at the Paris motor show last year. It was a massive hit and within a month of its UK debut at the NEC in November the 1000 'First Edition' models had been snapped up. Ford is confident that it will sell 6000 a year in Britain and there's even talk of securing a larger share of the 20,000 annual production run if demand is high enough.

Considering the excellent dynamic package of the Ka hatchback, it's a fair bet that the StreetKa won't disappoint those trusting early adopters. Andrew Pollitt, chief programme engineer, is very clear that the StreetKa couldn't abandon Ford's recent outstanding chassis work just because it may sell on looks alone. 'We're very proud of our class-leading ride/handling compromise and the StreetKa had to be great fun to drive.' So has Ford succeeded?

To find out, we've been flown to Cannes, in the South of France: a stylish location for a style-conscious roadster. Fantastic mountain roads within easy reach of the town are the perfect place to see if the StreetKa can cut it for those of us who'd like it to be a junior sports car first and poseur's playmate second.

Canvas hood up (disappointingly it has a plastic rear window) and driving slowly in urban areas, the StreetKa feels exceptionally stiff. The very worst ruts can provoke a momentary wobble but it's very rare for the StreetKa to feel anything but solid. Unfortunately the Ka-derived interior doesn't convey the same sense of well-being. A new instrument cluster, flashes of aluminium trim and part-leather covering of the dash can't hide the fact that its basic architecture is very similar to that of the ΂£7K hatch. And this is the top-spec StreetKa Luxury (expected to be by far the biggest seller) which costs ΂£13,750. The entry-level car is ΂£12,495 and both are powered by the same 1.6-litre 94bhp Duratec engine.

Ford has widened the front track by 22mm and the rear goes 35mm wider than that. Front springs are 12.5 per cent stiffer and there's a thicker anti-roll bar, while at the rear the twist-beam has been beefed-up too. Combined with 16in alloys and substantial 195/45 tyres, it's no surprise that the StreetKa feels more sure-footed than the stock Ka. Body-roll is well-contained even through very tight second-gear corners and at the limit of grip the StreetKa understeers gently. Through faster turns a lift of the throttle mid-corner will tighten its line neatly but you'll rarely encounter lift-off oversteer.

With relatively little power and the tyres' wide contact patch, the StreetKa doesn't respond to being bullied. Grand gestures simply slow you down as the little roadster scrubs its fat front tyres against the asphalt. And with only 94bhp to haul you along the straights, it pays to rein in your over-exuberance and drive smoothly. Do that and the nicely-weighted steering, faithful front-end and tightly controlled damping all combine to make the StreetKa a pleasing drive.

The stark truth, though, is that it isn't as much fun as the Ka hatch. With skinny tyres and no sporty agenda, the basic Ka is a real hoot to drive. It rolls more and has much less grip but that's what makes it such a flingable, friendly drive. The StreetKa's Duratec engine is a huge improvement, though. It spins smoothly up to the red-line with a pleasingly raspy note that a Ka owner wouldn't recognise.

There's no doubt that Ford was looking in the direction of the Peugeot 206CC when it developed the StreetKa. The Pug costs ΂£14,695 in 1.6-litre form and has been a huge success. But much of its appeal lies in its clever folding metal roof and small rear seats. While the StreetKa is the better drive, its price advantage is wiped out by the canvas hood and poorly detailed interior.

The StreetKa does however look modern and tautly sculpted - a bit like a mini TT - and it caught the attention of people wherever we went. As a sports car it's a little less convincing. It is fun to drive but you always want a bit more from it - sharper turn-in, still firmer suspension, rawer feedback and more power to exploit the well-balanced chassis. And then there's the price. The StreetKa may be virtually hand-built at Pininfarina's production facility in Turin but it doesn't feel like a near-΂£14K car. Ford promises that the upcoming SportKa, which features the same engine, trades some of the open car's suppleness for even more precise handling. If you're after the ultimate driver's Ka, it looks like you'll have to put up with a tin roof.