Sector: Lower medium Price: £TBA Fuel: 48.7–78.4mpg CO2: 93–134g/km

It’s ironic that Peugeot’s new 308 is the first car to enter a second generation with an “08” suffix, because this radically different new hatchback is so much of an improvement over its predecessor that the carmaker could comfortably have ditched convention and named it the 310.

This is Peugeot’s best-resolved lower-medium design since the still stylish 306 ended production in 2002.

It’s wider, lower and shorter bumper to bumper than the car it replaces, and with arches stretched over wheels up to 18-inches in diameter it has the on-road presence the Mk1 308 never quite managed.

Under the skin is PSA Peugeot Citroën’s all-new modular platform, named EMP2, as found in the latest C4 Picasso. Not only does this allow forward compatibility with the group’s diesel-electric Hybrid4 and hydro-pneumatic Hybrid Air drivetrains, but it’s incredibly lightweight, contributing half of the 140kg weight saving over the previous car. It means the 308 is lighter than the equivalent 207 was, with benefits for agility and efficiency as a result.

Launch engines comprise three petrol engines and two diesels. Around two thirds of UK 308s are sold to fleets, and even retail buyers are expected to continue favouring the familiar 1.6-litre e-HDI 115. While it’s a great fit here, and now a little more fuel efficient, the lighter body helps the e-HDI 92 feel almost as potent on the road, while CO2 emissions of 93g/km will cut a chunk off the running costs. It’s slower, but not significantly so.

New three-cylinder turbocharged petrol engines and, more notably for fleets, a trio of Euro6 compliant BlueHDI diesels are scheduled to arrive in Q2 2014, after which the launch engines will be phased out. Diesels will comprise 1.6 and 2.0-litre units between 120 and 150bhp, taking the 308 to a currently class-leading 91.1mpg and 82g/km with considerably fewer harmful exhaust emissions thanks to a new filtration system. The pre-production BlueHDI 150 available to test at the launch drove well, but felt heavier and sounded coarser than either of the launch diesels.

The latest models to join the range have all enjoyed strongest demand for the highest trim levels, and Peugeot expects this to be true for the 308. The two range-topping trims, expected to account for the bulk of UK sales, feature slimmer and more attractive all-LED headlamps and reshaped front bumper, which make it look more of a premium product than lower versions.

Equipment is generous across the range, though. All except the entry-level trim get Peugeot’s minimalist new dashboard, which puts most controls into an an intuitive centrally-mounted touchscreen, bundled with standard-fit satellite navigation. Important functions can be accessed using shortcuts around the map display, and despite minor, occasional, lagging it's an easy system to use and a unique selling point in this segment.

Otherwise, the dashboard is similar to the 208 and 2008, adopting the small low-mounted steering wheel with instruments perched just under the driver’s line of sight. It suits shorter drivers best, but the steering wheel adds a direct feel to the driving experience, and the anti-clockwise rev counter is an attractive novelty. Boot space has grown by 40 litres, but rear legroom isn’t as generous as rivals and the shallow rear window could make passenger rides claustrophobic for tall occupants.

So while Peugeot has hung onto the 308 nameplate, it’s the only surviving part of the old car. Its successor ticks all the right rational and emotional boxes to be a thoroughly desirable part of the C-segment.

Verdict

Peugeot has aimed for the best in the segment with the new 308, which is a tall order. But with style on its side inside and out, and low running costs even before its next generation engines arrive, it's become an attractive alternative to some of the segment's biggest names.

Highlights

• Euro6 diesels arrive next year setting a new C-segment efficiency benchmark of 91.1mpg and 82g/km.
• Aimed at a larger share of user-choosers, Peugeot expects 308 demand to be predominantly driven by the top two trim levels.
• New modular platform is compatible with Hybrid4 and Hybrid Air, but the near-future focus is efficient diesel technology.

Click here to find out what the new 308 offers the fleet market in a video interview with Phil Robson, director of fleet operations.