With fuel prices putting the frighteners on 4x4 owners, it's reassuring to know there's still a compact off-roader that isn't going to break the bank or batter your conscience.

It's the Volkswagen Tiguan – a solid, robust and stylish compact Sports Utility Vehicle that's quickly making a name for itself in the market and challenging industry icons like the Toyota RAV4.

Tiguan is essentially a mini-Touareg (the big brother off-roader also from VW) and is around the same size as urban dude the Nissan Qashqai, though Volkswagen's offering boasts more off-road clout.

More essentially for eco-conscious 4x4 fans, the Tiguan has the option of the relatively small 1.4 engine which uses the company's pioneering TSI technology to produce high power with low emissions from a relatively small capacity engine.

Nor is it embarrassed on road, with a decent 0-62mph time of 9.3 seconds and 119mph top speed.

Best of all, combined fuel consumption is a healthy 33.6mpg, with CO2 emissions of 199 g/km, though my own mainly urban road test result was a rather more disappointing 23.8mpg overall, according to the onboard computer.

I have driven a number of Tiguans off road at launch and was impressed by the vehicle's genuine capabilities over muddy fields and challenging inclines – there's even a more heavily protected Escape model tailor-made for the job.

But it's the more urban 1.4 model that I have been looking at longer term, and it's pretty impressive. A standard six-speed manual gearbox provides short, fast, snappy changes and the engine is always quiet, refined and well mannered, however many heavy-footed indignities you subject it to – and there's plenty of oomph when you really need it.

With an excellent ride, this first compact SUV VW has ever produced is comfortable and car-like to drive, with easy handling, involving steering and a nice, tight lock for easy manoeuvring and parking.

There are some interesting options available, too. My test car featured a full-length sunroof that ran the whole length of the car and opens at seven different points. With pop-up netting to deflect wind and passing insects and an full-length electric blind to cover it all up and keep out glare, it's an outstanding choice for summer.

Also up for grabs is the jaw-dropping Park Assist system which was pioneered on the Touran and takes over steering inputs from the driver while undertaking reverse parking manoeuvres.

Just drive past the space, take your hands off the wheel, keep up some gentle power and the car parallel parks itself as if by magic. I've tried it and it works.

Although it's undeniably compact, there is plenty of space behind the rear seats for luggage and a small amount of extra room underfloor.

Rear seats don't fully tumble but fold forward easily to create an almost flat floor for carting big loads.

Other clever design touches are the extra wide opening five-doors for easy access and the fact that they wrap around under the body to keep the sills clean.

Minus marks, though, for heavy pillars which can obscure vision and a bulky dashboard which can make the driver feel somewhat remote from the front of the car.

With its muscular image, superbly designed and built interiors (the Tiguan features no less than 12 separate air vents), a light, airy interior and bags of oddments space, Tiguan has plenty of appeal.

Four-wheel drive vehicles may find it more tough going as fuel costs spiral but in the Tiguan, VW has a vehicle that has the right size and spec for the rough road ahead.

At a glance:

• Volkswagen Tiguan is company's entry into the compact 4x4 market.


• Prices from £19,380-£23,370.


• Split into four trim levels – S, SE and Sport with a front end design biased towards on-road travel. Escape trim level has a unique front end design adapted for off-road use.


• Initially offered with a choice of two engine – a 2.0-litre TDI 140PS diesel unit or 1.4-litre TSI 150PS petrol engine. Later this year a 170 PS TDI and a further pair of TSI petrol engines will be available.


• Both six-speed manual and auto transmissions will be available (1.4 150PS with manual gearbox only).


• 4MOTION four-wheel drive standard.


• Load volume of 1,510 litres with sliding rear seats folded away.


• Safety features include ABS, Hydraulic Brake Assist (HBA), Electronic Stabilisation Programme (ESP), a curtain airbag system, side airbags and driver and front passenger airbags all as standard.


• Excellent on-road handling combined with good off-road ride.