In many respects Citroën C4 Picasso is one of the most practical cars of its type, with a spacious cabin and clever seats that can be folded in a variety of different ways. It’s also packed with features designed to take the stress out of family motoring.

If your mind is on growing the family there are certainly bigger MPVs – the Seat Alhambra offers seven seats and a much bigger boot. But the C4 Picasso is a stylish and more practical alternative to a traditional hatchback or estate, so is a great choice all round.

Diesel engines include a 1.6 with either 98bhp or 128bhp. The lower-powered engine is a bit weak, but the 113bhp version is easily up to the job of hauling five people and a bootful of baggage. There’s also a 2.0-litre diesel, which is an even stronger performer, but it delivers its power in one big surge as the turbo kicks in, so you have to change gear fairly often to keep the engine happy. Petrol options are a 1.2 with either 108bhp or 128bhp. The more powerful version has good response, but the diesels make far more financial sense regardless of current headlines.

The C4 Picasso has a lovely supple suspension that deals with broken tarmac pretty well, so you won’t have to wince every time you encounter an unforgiving road surface. However, patchy, eroded surfaces can unsettle the car a little too easily especially at low speeds, which means a trip through town isn’t as ironed out as you’d like. The Citroën’s body also tends to bounce up and down a fair bit along challenging country roads and with such a large body you’ll want to keep your speed down if any of your passengers are prone to travel or motion sickness. Wheel sizes range from 16in to 18in, with the former providing the smoothest and quietest ride.

The steering is light – great for manoeuvring at low speeds – but it’s also rather numb, which means it doesn’t inspire confidence on faster roads. The C4 Picasso sways through some tight twists and turns, although it never lurches around uncontrollably and there’s a reasonable amount of grip, so you always feel in control of the car.

The 128bhp 1.6-litre diesel engine is smooth and generally quiet, whereas the 2.0-litre diesel is noisier and allows a gruff diesel dirge into the cabin – even under moderate acceleration and the manual gearbox can be notchy giving a feel of imprecise shift. Refinement is otherwise good, though; wind and road noise are well suppressed, making the C4 Picasso a relaxing motorway cruiser.

No major issues with the driving position, and there’s plenty of seat and steering wheel adjustment to help you get comfortable. The front seats could do with a bit of extra lower-back support and all versions receive an adjustable armrest (there’s another for the front passenger seat).

Some of the Citroën’s internal switchgear can be tricky to get the hang of because many functions are controlled directly through the dashboard-mounted 7.0-inch touchscreen. Adjusting the cabin temperature means switching to a specific air-con menu and jabbing at the display with your finger arguably not the easiest or safest thing to do while you’re driving.

The C4 Picasso has decent visibility and its curvy styling is appealing. The windscreen stretches up and over the driver and passenger’s head, the split front pillars don’t obscure your forward view to badly and there’s a broad expanse of glass all around. Seeing out of the back isn’t too tricky, while VTR+ models upwards get rear parking sensors to make reversing even easier. Step up to Exclusive trim and you’ll even get a reversing camera. The Picasso’s standard 7.0in, dash-mounted touchscreen features smart graphics and large, easy-to-hit icons. There are also touch-sensitive panels around the edges of the screen that you can press to shortcut between functions. The trouble is, the buttons aren’t clearly labelled, so you have to study them carefully to make sure you’re pressing the right one.

The menu system on the touchscreen itself can be confusing. There’s often a long pause between pressing the display and the system responding. You can use the steering wheel controls to perform certain functions, but the sheer number of buttons and knobs adds yet another layer of confusion. Bluetooth and an aux socket are standard, as are the 12V sockets liberally strewn around the cabin and boot for those power-hungry electronic games. Digital radio makes an entrance from Touch trim upwards, but if you go for Feel or Flair you’ll also receive an impressive 12.0in, full-colour, panoramic high-definition central display with Citroën’s impressive Connect Nav.

The C4 Picasso has a smart-looking interior with an appealing blend of materials and textures. The dashboard is solid and soft to the touch, while most of the buttons and knobs operate with a positive and well-damped action. There’s the odd flimsy-feeling switch, but you’ll have to search hard to find any sharp edges or cheap-feeling plastics and that includes the rear cabin.

Lofty drivers will have no issues with head- or leg room. The bright and airy feel gives the impression of space than there actually is. The wide door pockets are easily big enough for large bottles of water, and you’ll find two more stowage areas on the centre console – one between the front seats and another beneath the touchscreen. Both of these have lids ideal for keeping valuables out of sight. You’ll also find two cupholders on the centre console, although these are positioned quite low down, so it’s a bit awkward to reach your cup of coffee. It’s a pity the glovebox isn’t bigger as what space there is inside is a rather awkward shape. The front doors open wide and because the seats are high, it’s easy for large people, or those with limited mobility, to enter or leave the vehicle easily.

There are three individual seats in the back, each of which has enough leg, head, and shoulder room to allow a six-footer to get comfortable. The flat floor is another bonus, because it means the person sitting in the middle doesn’t have to straddle a raised tunnel. There isn’t much stowage space in the rear cabin, however. The door bins are tiny, and you won’t fit much in the nets on the backs of the front seats. However, Flair models come with handy cubbies in the floor, along with foldable picnic tables on the front seat backs. Again, the rear doors open wide, making life easier at arrival and departure.

The rear seats can be reclined or folded flat independently of one another, and on Exclusive models and above the seats can also be slid back and forth to either give rear passengers more knee room or free-up boot space. The Picasso has more conveniently positioned Isofix mounts than most of its rivals, too, and because all three rear seats are an equal size you’ll have a good chance of safely carrying three young children in the back. The front passenger seat can be folded by pulling a lever, which means you can carry seriously long items such planks of timber or even a reasonable-length ladder will fit. With the rear seats folded flat you get a decent-sized boot (1851 litres) that’s long enough to take most pushchairs lengthways. The load bay is also flat, with no annoying steps or ridges to get in the way of loading and unloading.

With the rear seats in place the boot holds 537 litres, which is respectable for the class. The boot opening is also low enough to make loading heavy items relatively easy, plus there’s no boot lip, so you can slide your luggage straight in and out. Top-spec versions have a hands-free powered tailgate. All versions have lashing points, a rear parcel shelf and a handy, retractable load cover.

The Picasso undercuts the equivalent VW Golf SV and BMW 2 Series Active Tourer on price, and reasonable discounts are available if you’re prepared to haggle. You do need to choose carefully, though. The 2.0-litre diesel models are expensive, so are best avoided, whereas the 1.6 diesels represent good value for money. Resale values aren’t anything to write home about, but the Picasso won’t shed its worth as quickly as most big Citroën’s, and company car drivers will also be quids in thanks to the low CO2 emissions – especially from the 1.6 diesel engines.

Entry-level Touch models come with air conditioning, dual-zone climate control and alloy wheels, although it’s worth stepping up to at least Feel trim up because you’ll also get the brilliant 12-inch panoramic HD central display, Citroën Connect Nav and front and rear parking sensors. Flair trim adds a panoramic sunroof, a reversing camera and blind spot monitoring. Families are also likely to find the standard fit keyless entry, hands-free tailgate opening and fold-down aircraft style tray tables highly desirable options.

The options list is quite bewildering and dominated by packs. Most are trim-specific (they’re not available across the range). The Kids’ Pack is useful (a rear observation mirror and sunblinds) and inexpensive. Another, the Feel Convenience Pack, brings a stack of extras, including lane departure warning, radar-guided cruise control and a powered tailgate. Six airbags are fitted as standard on all versions, including curtain ’bags to protect front passengers as well as those in the back.

The C4 Picasso scored relatively poor marks for adult occupant protection in Euro NCAP’s crash tests. That said, it was found to be one of the best MPVs at keeping small children safe in an accident, which is a big selling point.

Range-topping Flair models have a raft of safety assist systems, including one that alerts you if another car lingers in your blind spot. You also get active seatbelts. It’s an excellent package that makes the top-spec Picasso a safe family car. These systems are optional on Feel trim but not available at all on the entry-level Touch Edition. All models receive a perimetric and volumetric alarm which is Thatcham Category 1 approved.

When it comes to family-focused people carriers Citroen has long led the way. The new C4 Picasso is good enough to help Citroen rid itself of the budget reputation it once had with big leaps forward in quality and design. Yet it has kept the elements of practicality, space and user-friendliness that have attracted so many buyers before. It looks a real winner as a family MPV.