Producing 59kW and 107Nm, and teamed with a Suzuki five-speed manual transmission, the powerplant is smallest and most efficient unit ever installed in a Seven.
Unveiled at Frankfurt by Caterham Cars CEO Graham Macdonald and Suzuki executive vice president Toshihiro Suzuki, the Caterham Seven 165 is to be sold across mainland Europe and Japan at a price of 25,000 euro ($36,600) including local taxes.
The model will also be joined by a cheaper variant in the UK, dubbed the Seven 160, promising to start at less than £17,000 ($29,300).
Combing a front-engined, rear-wheel-drive layout with turbocharger characteristics and super skinny tyres, the Seven 165 is sure to be an entertaining package for those on a budget.
Production is planned to start in January 2014, with first deliveries to follow in March.