Little Crazy Car by Hilda Boswell, published by Peter Haddock, undated but I have found online that it was first published in 1965. This is a later edition I think.
I wanted it because the illustrations are very very strange, quite cute but in a slightly disturbing way... See what you think:
I had this book as a child and really liked it. You're right, there is something slightly alien about the illustrations - which is probably why I liked it. I must see if I can find it in the attic...
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