The Wagon-R was a new concept in hatch-backs in India when it was first launched, particularly for its looks. It hence took a bit of time to catch on, but by now it has grabbed the market very nicely. The kind of interior space/ leg space you have in a Wagon-R is unmatched by several sedans, and ALL small cars. The power-steering is excellent, and driving is easy. The fuel efficiency of my BS-II car is not great, but not poor either. Among the problems I have faced in the last three and half years with my Wagon-R Lxi are (1) the poor rear view mirrors, (2) lack of space in the back seat if you want to fit three people (the manual does say it is a five seater), (3)slight topsy feeling when driving on poor roads (undulating surface/ big potholes), which is probably due to the high position of the CG due to the car's height. Overall, the Wagon-R is highly recommendable for a small family, needing a city car which can take occassional long drivesComfortable, spacious, smart no-nonsense lookrear viewing is poor, actually a four-seater