There’s more competition in the commercial seated 4x4 market with the arrival of the Mitsubishi Pajero as a third player to join the Land Rover Discovery and Toyota Land Cruiser. For those drivers who can qualify for the tax breaks associated with buying and owning one, there’s now more to consider.

The Pajero just looks and feels like a big 4x4 machine that’s been glossed up in terms of appearance. And, yes, it is physically longer than its competitors.

This new Pajero has been upgraded to enhance its slightly dated look. The interior specification is impressive and it’s only available with a five-speed automatic gearbox. There is a new Rockford speaker system on board, which includes a large satnav screen that doubles as the viewer for the reversing camera. Leather seating is also standard.

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The overall level of equipment for the current generation Pajero is the highest ever and it offers impressive value with the entry price of €49,950 (£31,734 in NI) including. VAT. That, coupled with the fact that it has a 3.5-tonne towing capacity, is what’s making buyers give the Pajero some serious thought. You get a lot of 4x4 in terms of capacity and features with the new Executive badge Pajero. I especially liked the reversing camera; so useful when hitching and reversing a trailer.

In a performance sense, this Pajero uses a proven 3.2-litre turbo-diesel engine. The engine, at 200bhp, is midway between the Land Cruiser and Discovery in terms of power. Torque is higher than the Land Cruiser, but you have to rev higher in the Pajero to reach the top torque level.

The economy rating is 11.6km/litre (8.6l/100km or 32.8 mpg) and I was close to that on steady runs without a trailer. Put the trailer on tow and take to smaller roads and the economy levels are halved.

I’m not surprised about the impact of the trailer on economy – I was more impressed with the ease with which the Pajero can tow, given its 3.5-tonne limit. The trailer has no impact on its acceleration or road holding. The Pajero is heavy enough at 2,275kg to cope with a big trailer load.

I liked the Mitsubishi Super Select 4 II transmission that offers four driving modes: 2H rear-wheel drive, 4H full-time four-wheel drive, 4HLc that locks up the centre differential, and 4LLC for low-ratio off-road work. I used the 2H mode most of the time, which Mitsubishi claims has a new drive system that saves 3% in fuel.

I then took the Pajero off-road into a field of short after-grass with a tandem axle cattle trailer. The good weather meant traction was superb and even modest hills were no effort. I selected the 4LLc system to lock up the centre differential and give enhanced traction, but it was not needed. You must stop the Pajero to change into 4HLc and 4LLc.

This new Pajero has a good safety package, but has not been tested by the Euro NCAP system. The safety features include a redesign of the propeller drive shaft and a new steering shaft; both collapse more easily in the event of a crash. For passengers, there are twin dual-stage front airbags as well as twin side and curtain airbags. And stability control and traction control systems make this the safest Pajero ever.

The Pajero still feels big and heavy to drive. The auto box was easy to use and not any thirstier, even if a little less smooth in engagement than some of the others. This is a strong 4x4, designed to work and not all drivers can be comfortable with that. It can be competitive to own but so much depends on your tax status.

A major running cost could be annual road tax. The CO2 rating puts it into band F and that costs €1,200 per year if you cannot tax it as a commercial. If you can, this drops to a much more affordable €333. That’s where the Pajero deal gets really worthwhile.

And the tax breaks are attractive; you can claim VAT back on the buying price if you use the 4x4 as a commercial vehicle. This works for some farm family businesses, but talk with your tax adviser before buying.

If you can’t justify it for tax reasons, you might on the basis of the price difference alone and the €1,200 annual road tax bill might be eased by the fact that a year ago the non-commercial version cost 26% more at over €60,000.

Is there enough the persuade buyers away from the Discovery and Land Cruiser? The Pajero is a match in terms of performance and economy while it scores on towing ability and strength. The fuel tank is a shade modest for a 4x4 that can burn the juice and after that your choice will be determined by the price.