In recent years Kia has moved from being a cheap and cheerful alternative to established brands to become an increasingly serious player in many sectors of the market.

From city cars to sports utility vehicles, Kia’s line-up spans all the important models except one vitally important area which is the most competitive area of all — the medium-sized saloon.

Now it has launched the Optima aimed squarely at the company car driver which means that it is locking horns with the ubiquitous Mondeo, Passat and Insignia.

The good news for Kia is that it has done a sterling job in catching up with the market leaders in just a few short years.

It is a good-looking car which looks far more modern than many of its rivals which means that it stands out from the crowd.

Under the bonnet the only option is a 1.7 litre diesel which some may think is too small for a car that is destined to spend its life on the motorway but with 134bhp there is more than enough power for it to keep up.

Acceleration is brisk, while handling inspires confidence with taught, responsive steering and reassuring grip.

Kia’s progress in on-road dynamics has been rapid in recent years. The firm has taken developing cars for Europe very seriously indeed, and the Optima copes well with the various levels of broken surfaces that pass for UK roads in this day and age.

And although available with a six-speed auto gearbox, the six-speed manual boasts a gear shifter with a decidedly sporty and accurate short-throw action.

And all this comes with good economy stretching up to 57.1mpg. On a long motorway run to the North East, I managed comfortably more than 50mpg which comfortably beat my previous record.

Technically, with a range of more than 600 miles for a tank, there was enough fuel for a return trip which would also be a first.

It is also a surprisingly large car. Immediately obvious is the amount of space available. Front seat occupants won’t be bashing elbows and those in the rear benefit from enough legroom to rival that from a car in the class above.

There is also a large boot with plenty of room for a family’s baggage while cup holders abound.

Cabin fit and finish is also impressive, with good quality plastics everywhere and familiar, sturdy switchgear plus supportive, heated seats for those predictably long journeys that company car drivers undertake every day.

The value-added proposition continues with a generous helping of kit throughout the range. Like other Kias the Optima is available in trim levels labelled 1, 2 and 3.

The test version was a 2 Luxe which offered dual climate control (very effective), panoramic sunroof, cruise control, reversing camera and sensors, leather seats and Bluetooth connection for that all-important telephone.

The only thing lacking was a sat nav, although that is available in another version, depending on your choice. Ultimately it offers as much as its rivals and probably a little more but the question is whether it remains good value.

At £21,695 it is no cheaper than the equivalent Passat and perhaps more expensive than a Mondeo. Effectively, Kia has lost its edge when it comes to price which means that it has to be judged on its own merits, which are impressive.

However, it is no more economical than some of its rivals and the performance is on a par. What does set it apart is the class-leading seven-year warranty which will be reassuring for many fleet managers.

The question is whether they would opt for a Kia over one of the established rivals in this cut-throat class.

What is clear is that the Kia is certainly a contender — and there are unlikely to be any risks from choosing one, even in terms of depreciation. And that is something you would not have been able to say five years ago.

Model: Kia Optima 2 Luxe 0-62mph: 10.2 seconds Top speed: 125mph Economy: 57.6mpg (combined) CO2: 128g/km Price: £21,695