The Panda is back, and for those of us old enough to remember it, the car couldn’t come soon enough. Few cars carry quite so much goodwill from the motoring public.Following a line of retro models launched in recent years, it’s easy to cynically dismiss the Grande Panda as yet another product of the nostalgia production line. It seems at times like the car industry has discovered it’s easier to sell on the back of childhood memories than manufacture originality.The epitome of this ploy is the Ford Capri, which asked you to buy memories of the badge rather than the car.Thankfully, this Grande Panda manages to play the retro game without becoming pastiche. It plays on memories of past motoring, but is not trying to replicate the past. Instead, it plays up its heritage, like a grandchild of the original.Fiat has been running on the fumes of its cute 500 model for years now. To put some perspective on its situation, over 85,000 new cars were sold in Ireland in the first six months of this year. Of those, 111 were Fiats. If they were Ferraris, you might take comfort in the healthy margins. But these are cars that sell for under €30,000.Fiat sales staff can finally take some succour from the arrival of this Grande Panda. It’s been a long time coming.The great news is that it’s got its own character. And it’s definitively one of an Italian small car, designed for tackling the narrow little streets and the hectic autostrada. Its upright seating, expansive views, cheerful colours and practicality mean it marries its fashion with admirable functionality.Too many cars in this class – and many larger models – have the warmth and charm of a washing machine.The cabin is imaginative, with real character, from the quirky use of bamboo to the retro-style graphics on the driver’s digital display. The touchscreen display is on a par with rivals, but there are enough buttons to placate those who detest scrolling through menus for simple tasks.Fiat Grande Panda makes a welcome return Cabin has lots of style For a price-conscious car, there are ample signs that the designers didn’t just churn this out. Thought went into the little things and that’s something worthy of praise, considering how many premium car makers seem to apply a one-style-fits-all approach to interiors these days.For a car this size, the practical storage is impressive. There are deep cubbyholes, and while the boot lid is a little high, there’s a deep well that keeps everything in place.Fiat should have sacrificed the middle rear seat and made this an honest four-seater rather than pretending it can take three across the back. That would also have improved visibility through the rear window by losing the middle headrest.Offered in full-electric or mild-hybrid variants, the roomy city car – really a supermini – fulfils many preconceived notions of Fiat. The best of their cars were fun, affordable, and a little quirky. They were also surprisingly resilient, from a brand that didn’t always have the strongest reputation for reliability.There will no doubt be a feisty variant in the pipeline, just as there are already plans for a very tempting 4x4. But for now, the car delivers modest performance, a little body roll and steering that leans on the lighter side of life, which, in fairness, is a boon when around town. This Panda may be grande, but it can turn and twist out of tight car parks nearly as nimbly as the 1980s original.Panda has lots of room for storage Fiat Grande Panda is an easy drive That means it’s charming rather than sporty, but ultimately very easy to drive.Our test car was the mild hybrid, which marries a peppy 1.2-litre three-cylinder petrol engine with a 21kW electric motor integrated into the six-speed automatic transmission.The 48-volt battery system can deliver electric-only driving when parking or crawling along in city traffic, and combined with regenerative braking supposedly delivers better fuel economy. It’s the same set-up used by its cousins in the Stellantis Group, such as the Citroën C3. We were getting 6 L/100km during our time with the car, which isn’t stellar when pitted against Toyota’s hybrid rivals, which get closer to 4.5 L/100km.Is the fact that others seem to achieve better fuel economy a deal-breaker? No, because the Grande Panda delivers something different: distinctive styling and practicality. In short, charm.With a 0-100km/h time of 11.2 seconds, the open motorway is not its natural habitat. But unlike the original Panda, it never feels out of its depth or vulnerable, and it can cruise along with the biggest of the trundling SUVs and trucks. There is noticeable wind and road noise, but it’s not overly intrusive, and it doesn’t suffer the same fate as old Pandas when caught in a crosswind.There is the usual array of scolding bleeps from the modern driving aids that act like impatient schoolteachers to today’s drivers, but they are thankfully not as intrusive as with some Asian rivals.It’s heartening to see Fiat return to its traditional strengths, producing small cars with real personality. The Panda succeeds because it isn’t trying to imitate rivals. It’s charming, spacious, practical and genuinely enjoyable to drive if you accept its limitations.Fiat’s fortunes are about to see an upturn with several new models in the pipeline, including a new crossover, the Grizzly, due later this year. That isn’t trying to hark back to any retro past.Clearly, parent Stellantis has brought its wider supplier base to play on the car, but unlike so many small cars from giant auto groups, this isn’t just a rebadged metal box.The Panda isn’t a Citroën in an Italian suit. Contrast the Panda to the recent Renault 4 launch. While the French car brand played heavily on the original’s silhouette, this Fiat captures something more elusive – the spirit of the original Panda.It’s also well priced. This version was the range-topping La Prima, but the hybrid starts at €25,800, which is right in the mix with rivals like the Citroën C3 or Toyota Yaris Hybrid.The Yaris is probably the complete package: mature, more refined on the road, fuel-efficient, and sensible overall. Yet it feels more compact and lacks the charm and character of the Italian. The MG3 is certainly cheaper and a nice car to drive, but its interior exemplifies the lack of thought and attention that’s unfortunately common on a lot of Asian small cars. There is little to love. Fiat has captured the spirit of the original Panda There are other cheaper options, but they lack the Grande Panda’s charm.[ Skoda’s new Peaq lifts the brand well above its bargain rootsOpens in new window ]This is the most likable Fiat in years. It isn’t the most efficient hybrid or the sharpest supermini, but it has something increasingly rare in affordable cars – personality.It’s not trying to sell us back our childhood. Instead, it’s reminding us why some parts of it were simple fun.Lowdown: Fiat Panda 1.2 La PrimaPower: 1.2-litre three-cylinder petrol engine supported by a 48V battery set-up powering a 21kW electric motor, delivering a combined output of 110bhp.0-100km/h: 11.2 secondsOfficial L/100km: 5.1Emissions (Motor tax): 117g/km (€190)Price: €28,880 (From €25,800 for 1.2-litre hybrid)Our rating: 4/5Verdict: Charming fun at an affordable price. What’s not to like.