Caterham will soon release a new entry-level model, powered by a 660cc three-cylinder turbocharged engine from Suzuki.

It will be the smallest and most efficient engine ever installed in a Caterham Seven.

The engine will be mated to a five-speed Suzuki gearbox.

Caterham say they have fine-tuned the engine and gearbox to suit the Seven’s character, while retaining its inherent fuel efficiency and low emissions.

Caterham Cars CEO, Graham Macdonald, said: “It is not engine size that matters, it is the grin factor that is our barometer and we believe we have got the formula for our new entry-level vehicle just right.

“Suzuki is a leader in producing compact vehicles with extremely efficient engines and that is clearly a shared passion. We needed a particularly light powertrain but it had to be a unit that suited the characteristics inherent to all Sevens – thankfully, after lots of hard work, we have a package that works brilliantly.

“Our intention for this car is to offer the joy of the Seven in distilled form, so the new entry-level car is lighter, cheaper, more economical and more accessible than ever.”

The new Caterham is expected to be priced under £17,000 when it launches this Autumn, with first deliveries due before the end of the year.