How things have changed – even boy-racers look at the economy costs before performance figures these days.

If you’ve seen recent advertisements by Audi and BMW, you’ll see just how much emphasis is applied to running costs and how little on brake horse power and 0-60mph times.

Even the sporty Golf is far from immune. The car that could claim to have invented the hot-hatch, with the Golf GTI, is out to prove it can be green and fun. With petrol (and diesel) exceeding £1.20 a litre, that’s the big challenge for car companies these days.

So, here we have the Golf GTD. It is the GTI’s diesel-powered sister, which manages 60mph in 8.1 seconds (good) and more than 53mpg on a run (exceedingly good).

With the ability to cover 650 miles on a tank, Volkswagen claims this is the ‘hot hatch of the moment’.

It’s good. Slightly understated, it looks modest – too modest, some may say – but the runabout looks conceal a car which handles well and performs with spirit. It rides and handles very well, and is smoother than you would ever imagine from a diesel.

The Golf in any form is a formidable car – well-built, solid and reliable. In performance form, it’s excellent. Expensive, perhaps, and lacking the sex appeal of some of its rivals, but still an exciting car.

It’s not so long ago that the car appeared, with a new, sharper look, equally sharper interior and more polished driving manners. In a nutshell, the GTI offers the same level of improvements; not so radical as to alienate the fans, but more than enough to keep the competition at bay and attract new buyers.

To Volkswagen’s credit, it’s a fine balance that it’s successfully managed for years. There have been hotter Golfs to satisfy the speed merchants, but the GTI has been the mainstay performance all-rounder.

Power is from a 2.0-litre (1,968 cc) common rail TDI engine which produces 170 PS. Driving through a six-speed manual or automatic DSG gearbox, this translates to effortless performance with CO2 emissions of just 139 g/km.

The sharp responses are partly down to the fact that this model has been lowered by 15mm, compared to a standard Golf.

In addition, Volkswagen’s innovative Adaptive Chassis Control system, featuring pneumatically-controlled damper units, can be specified on the GTD. This allows the driver to select from normal, comfort or sport modes.

While the Golf GTD looks modest, it does have one or two differences over the standard model, including a honeycomb grille and the addition of chrome rather than red highlights. At the back, full body-coloured bumpers make the GTD appear lower and wider than it really is, while the Golf’s standard wheels are replaced with unique 17-in ‘Seattle Black’ alloys.

Inside, the main contact points are unique to the Golf GTD – a flat-bottomed steering wheel, GTD gearshift and standard tartan interior. The tartan finish is subtly different from that in the GTI, being grey, white and black, rather than red, white and black.

As with the entire Golf range, it features class-leading levels of safety, with ABS, ESP and seven airbags, including for the first time a knee airbag, all standard. The Golf was recently awarded a maximum five-star rating by the EuroNCAP crash testing agency.

Despite the Golf’s performance credentials, its chassis and suspension always remain on the right side of sporting. It’s also likely to be your only car, which makes the need for a compromise all the more important. But the real world experience never feels like a compromise, and for many that’s a good enough reason to trade a 100-plus horsepower for something that won’t prove a handful on all but the smoothest of roads.

Along with the GTI’s pleasingly co-operative engine, the car boasts a clever traction system that behaves like a trick differential. Powerful front-wheel drive cars can struggle on bumpy or wet roads, but the Golf’s electronic differential balances the available grip with the antics of your right foot. From hasty junction exits to mid-corner bumps, the XDS wizardry always manages to smooth things out.

With its responsive yet surprisingly-frugal engine, supple ride, capable chassis and genuine all-rounder talent, this latest Golf is a car that can be enjoyed day in, day out.

Volkswagen Golf 2.0 TDI 140 GTD three-door: PRICE: £20,870. Golf starts at £14,850.

ENGINE: A 2.0 litre turbo-diesel unit generating 140bhp.

PERFORMANCE: Top speed 130mph, 0-60mph in 9.3 seconds.

COSTS: average 57.6mpg.

EMISSIONS: 139g/km.

INSURANCE: Group 24.

WARRANTY: Three years, 60,000 miles.

Steve’s Ratings: Performance: 4/5 Ride/Handling: 4/5 Space/Practicality: 4/5 Equipment: 3/5 Security/Safety: 4/5 OVERALL: 4/5