Citroen used to be funky. It turned out some of the most interesting cars of the 1950s and 1960s.

Talk to anyone who was around in those days and they will turn misty-eyed at the thought of those old DS models which looked like floating space ships.

In austerity Britain, they made an impression, but somewhere along the way Citroen got lost. The 1980s, 1990s and 2000s were devoted to making successful cars but they could have been mistaken for Fords or Vauxhalls.

Now Citroen has re-found its stylish touch. The DS is back with a bang. The company must have been inspired by MINI and, to a lesser extent, Volkswagen, for the MINI and Beetle proved that nostalgia really was the future. Citroen now has personality. The DS3 (a three-door hatch) and DS5 (a hatchback, cum estate) have injected pride and desire into the brand. The DS4, tested here, is another of the new DS line-up. It’s my favourite of the three, but frankly if general consensus is to be believe it trails the others.

The DS4 is a five-door hatchback which is taller than some of its rivals and more mainstream in terms of looks than the other DS models.

It’s billed as a coupe, yet it looks like a hatchback and it’s as big as some mini people-carriers. Like many cars of this generation, it’s a crossover.

It has certainly helped to breathe new life into Citroen and has in effect created a brand within a brand. Citroen exists as a bread-and-butter manufacturer but the DS group is a group designed to appeal to the more fashion-conscious MINI types. So, how exactly does the DS4 shape-up? Rather nicely. The best feature is the engine. A few years ago you would never have imagined a 2.0 litre diesel engine would be refined and sporty, but this one is. It also returns more than 65mpg on a run and more than 42mpg around town. Impressive.

Style wise, it’s a good-looking car, not as fussy as some Citroens of the recent past, but still interesting. It’s a tall car but it still looks elegant and upmarket.

The DS4 might be billed as a four-door coupe – something that a few other manufacturers have presented – but Citroen have gone a step further and created something of a crossover. It’s never a coupe, whatever the marketing people say, but it does have some coupe features such as excellent ride and handling.

The rear doors are concealed neatly, so keeping to the coupe theme. And space is excellent in the front and back.

It has one or two interesting features, too. The panoramic windscreen brings more light into the cabin and affords a better view out. It features an adjustable sunblind system so you can enlarge or shrink the windscreen, which ever feels best.

Despite the focus on appearances the DS4 is a thoroughly practical car. The overall height of the body means plenty of room regardless of whether you sit front or back and the boot is a usefully large 359 litres with a further 26 litres beneath the boot floor. It’s worth mentioning that because of the unusual shape the rear windows are unable to roll down, although in a car with climate control as standard this is unlikely to be an issue. Certain models also come with a vast centre console storage box, which adds up to an impressive amount of space.

Although the cabin is more conventional than the exterior there are still some smart touches. There are flashes of silver around the air vents and gearlever, there is the option to have customisable sounds and lighting effects and should you choose the full leather trim option the seats have multiple panels that evoke the look of a watch bracelet – unusual but highly appealing.

With the blend of practicality and style sorted out, Citroen also claims that the DS4 is sporty as well as comfortable and offers an involved driving experience, and after sampling various versions it is hard not to agree.

The way in which the steering responds to inputs and the suspension keeps the body in check when cornering is impressive. While it will never match the sprightliness of the DS3, for a car of its size and status the DS4 is an enjoyable car. The larger 19in wheel options trade a little ride comfort for the sake of looks, but this is also down to personal preference: regardless, the DS4 strikes a balance between comfort and fun that will be just right for most people.

Whoever came up with the idea of reviving the DS tag deserves a medal. Citroen is once again hip.