Hyundai's Veloster might not be quite as focused on the hard-core driving character as the 86, but with its mix of style, performance and practicality, it has gone toe to toe with the Toyota for the title of Australia's favourite sports car for the past few years.

Now, the South Korean car maker has reacted to the 86 by giving its quirky three-door hot hatch a mid-life spruce-up with a revised model range, a host of new features and the adoption of a dual-clutch automatic in the range-topping SR Turbo we're testing here.

The original Veloster was available in three distinct models, with the lower-grade, naturally aspirated variants split by a two-tiered walk through from the entry-level Veloster to a more feature-packed Plus offering, while the range-topping Turbo was available in a single SR grade.

With the Series II, Hyundai has divided the range evenly and now offers the Plus specification in both the standard and Turbo models, thereby reacting to the 86 with a sub-$30,000 offering for the high-performance Veloster for the first time and expanding the range to four variants.

With a starting price of $24,490 (plus on-road costs), the entry-level Veloster undercuts most baby hot-hatch rivals and, although it doesn't have the outright performance to match, it isn't short on equipment, with standard features such as 18-inch alloy wheels, a reversing camera, rear parking sensors, Bluetooth audio, cloth and leather trim, cruise control and keyless entry. For an extra $5000, the Veloster Plus has full (but faux) leather trim, a 7-inch colour touchscreen with satellite navigation, smart-key entry, climate control and a full-length panoramic sunroof. A six-speed automatic is a $2500 option on both grades.

For those who desire a bit more punch to match the looks, the new $29,990 (plus on-road costs) SR Turbo closely mirrors the entry-level Veloster in terms of equipment. However, with a few extras, such as electric adjustment for the front seats, projector beam headlamps, LED tail lights​ and a full body kit, the price jump is less dramatic in the Turbo models, with the Plus model we're testing starting at $33,990 (plus on-road costs).

For the first time, an automatic is an option on the SR Turbo, with a new seven-speed dual-clutcher costing $2500.

While the design of the Veloster's cabin hasn't changed much, the SR models have a sportier ambience, with a tasteful splash of colour throughout in items such as the seatbelts, the stitching on the steering wheel and side bolsters in a grey that stands out from the mostly black layout.

The instrument pod has a new digital display between the analogue speedometer and tachometer, which are clear and easy to read.

Otherwise, the Veloster still marries Hyundai's angular interior design theme over from other models, but with a few unique twists, such as floating hand grips in the front doors, a centre-mounted starter button and the simple but effective multimedia touchscreen.

Small door bins restrict small item storage, compared with regular family hatches, but there's a decent binnacle at the base of the centre console and a pair of cup holders between the seats.

The quality of the materials isn't flash, with a mixture of different textured hard plastics, but the heated and ventilated seats are snug, with plenty of lateral support even if the driver's seat feels as though it is perched too high. Although it spoils the sporty feel from behind the wheel, it does provide easier entry and allow good vision.

The Veloster's asymmetrical door layout – with one door on the driver's side and two on the passenger's side – remains and makes it more convenient for back-seat passengers to access the rear bench. It may be much more accommodating than an 86, for example, but it's not an environment you want to use regularly, as the low roof compromises headroom.

The boot is practical, but the Veloster's split rear windscreen takes some getting used to, as the wing that separates the two pieces of glass can block some vision and the curvature of the upper section can distort the view a little.

The Veloster SR Turbo's 1.6-litre turbo-charged four-cylinder engine produces a decent set of numbers, generating 150 kilowatts and 265 newton metres – slightly more than the high-revving flat four in the 86, but less than the larger-capacity, force-fed motors in genuine hot hatches such as the Ford Focus ST and Renault Megane RS.

In everyday situations, it's a smooth and refined engine that delivers its power in a relatively smooth manner from low in the rev range, and builds momentum quickly through its mid-range punch to provide effortless overtaking at highway speeds.

However, it lacks the whack-in-your-back surge of more powerful rivals or the dizzying top-end zing of naturally aspirated alternatives, even though it can easily spin the front tyres under hard acceleration. The exhaust note doesn't compensate with any excitement factor either, bringing no theatre to the experience.

Hyundai claims the Veloster SR Turbo consumes on average 7.1litres per 100 kilometres, which is on par with rival-performance car options, but not exceptional, considering its smaller-capacity engine. During a mix of city and freeway driving, with a short back-road blast, we recorded 8.2L/100km, which, encouragingly, isn't that far off.

As with all its latest models, Hyundai Australia has spent considerable effort refining the Veloster's suspension settings to suit local tastes and conditions.

The improvements, starting with wider tyres and changes to the springs, anti-roll bars and bushes, are immediately noticeable on the road, as the Veloster displays a good balance between its sporting pretensions and everyday comfort, soaking up most road irregularities without the bone-jarring nature or fidgety character of more hard-core options.

The flipside is that the Veloster isn't as exciting to drive through the bends, as the front end can easily push wide when cornering hard.

Although the Veloster has a three-mode power steering system, there isn't a Goldilocks setting, with the default Comfort and mid-level Normal offering the kind of lightness that makes it easy to manoeuvre around town, but not much feedback from the tyres. The Sport setting is better in terms of weight, but still doesn't relay much information back through the wheel.

Similarly, the six-speed manual transmission is light and easy to use, but doesn't offer much in the way of mechanical feel when changing gears.

There's still a lot to like about the Veloster, from its style, practical cabin and the amount of kit for the money. The ownership incentives cannot be ignored either, and its long-term retained value belies the perception of the Hyundai brand.

However, although the recent upgrades go some way towards improving the Veloster's appeal for everyday use, it still lacks the final veneer of excitement and engagement when it comes to its driving character for enthusiasts.

Price: $36,490 plus on-road costs

Country of origin: South Korea

Engine: 1.6-litre, 4-cylinder turbo petrol

Power: 150kW at 6000rpm

Torque: 265Nm at 1750-4500rpm

CO₂ emissions: 165g/km

Transmission: 6-spd manual, front-wheel-drive

Weight: 1300kg

Safety: 6 airbags; stability control

Pros: Value for money, smooth engine, comfortable ride

Cons: Not as exciting as rivals, lacklustre steering, hard plastics in the cabin

Fuel use: 7.1L/100km (7th notch, below average)

Performance: 115kW/tonne (7th notch, good)

Boot: 320L (4th notch, average )

Resale: 64 per cent (10th notch, excellent)