The first ever motorcycle grand prix to be held at the new Aragon circuit in Spain has been won by home star Pol Espargaro, after a last lap victory over countryman and new title leader Nico Terol.

The event began with drama when previous points leader and pole sitter Marc Marquez was hit from behind and taken out by a fallen Randy Krummenacher at turn one, leaving the 17-year-old to punch the ground in despair after his second DNF of the year.

The incident was later 'under investigation' and Krummenacher, who was able to rejoin, was black flagged by race direction.

While Marquez trudged back to the pits, Bradley Smith took the early lead from Marquez's title rivals Espargaro and Terol, who soon moved ahead of the Englishman.

Terol, who has tactically waved riders past at several rounds this season (then been unable to re-pass them), seemed to allow Espargaro to take the lead on lap nine of 19. Espargaro then returned the favour by easing off and allowing Terol ahead with seven laps to go.

The cat-and-mouse continued until Terol tried to make a break with five laps remaining, which looked like it might work as the Aspar rider pulled over half-a-second out of Espargaro.

But the Tuenti Derbi rider clawed the time back and the last lap began with Terol just 0.134sec ahead of Espargaro.

Terol held his nerve to reduce Espargaro's options as much as possible and the battle for home victory - and the honour of receiving the winner's trophy from the King of Spain - was decided on entry to the final turn.

Espargaro slipstreamed around the Aprilia rider along the back straight and got to the first apex of the long last corner just ahead of Terol, allowing Pol to clinch his third victory of the season by 0.050sec.

The result means that Marquez - who began Sunday's race with a nine-point lead over Terol and 20-point advantage over Espargaro - has now dropped to third place, eleven points from Terol and five points behind Espargaro.

Once overtaken by the leaders, Smith safely maintained third ahead of Marquez's Ajo team-mate Sandro Cortese for the rest of the race to complete the podium.

Race results - Aragon:

1. Espargaro (Derbi) 19 laps
2. Terol (Aprilia) +0.050s
3. Smith (Aprilia) +9.460s
4. Vazquez (Derbi) +15.999s
5. Cortese (Derbi) +18.396s
6. Koyama (Aprilia) +18.967s
7. Rabat (Aprilia) +25.971s
8. Folger (Aprilia) +26.129s
9. Webb (Aprilia) +39.717s
10. Salom (Aprilia) +42.719s