IT’S Kia’s budget baby - the Rio.

We picked up the entry-level variant, which is aggressively priced at just $13,740.

“I’ll bet that’s cheap and nasty,’’ said a colleague when I gave him the rundown on our road test subject. “You only get what you pay for, you know.’’

Because of the ridiculous price tag, this is perhaps a common perception, but after a week behind the wheel of the little hatch, we disagree.

Let’s look first at what the package includes:

The Kia Rio, which was redesigned in 2006, has been given fresh styling for 2010 with a revised grille, new-look bumpers and headlights.

Inside, there’s the same practical and no-fuss layout, but a higher quality feel than the previous models.

The car's green instrument lighting has been changed to red backlighting and like the Cerato and Soul, the Rio also gets the new three-spoke steering-wheel design.

Standard features include front power windows, air-conditioning, power steering, anti-theft immobiliser, remote central locking with keyless entry, driver and front passenger airbags, MP3 compatible CD tuner with 4 speakers, AUX/USB input with iPod compatibility and Bluetooth connectivity.

Another big plus is a 5-year unlimited kilometre warranty.

Up-front the cabin space is good, comfortable even for longer commutes.

The rear is competitive for the class, but better for kids than adults.

There are plenty of cup holders and storage options and a 60/40 split back seat that gives you flexibility to slide in a surfboard, golf clubs, or the labradoodle. There is a full-sized spare in the boot.

To drive, the Rio does most things adequately, without shining.

Steering is light and a little vague and the hatch’s road manners uninspiring, but it’s all quite functional.

In fact, we put the Kia through a week of city and highway work and found it very easy to live with.

Under the bonnet, the 1.4-litre four cylinder engine is unchanged and if you had a bigger budget you would probably be looking for a car with more grunt.

The 5-speed manual transmission shifts easily and has a light clutch action.

Sold in Korea as the Pride, the Rio is a big seller globally and the brand’s best seller locally.

Backed by its refreshed looks, quality tweaks and sharp pricing, this trend is sure to continue.