Peugeot goes premium with the new 508 – and convincingly, too. By Alex Grant.

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SECTOR Upper Medium PRICE £21,000-£34,000 est FUEL 49.6-76.3mpg CO2 98-131g/km

Peugeot is on a roll; a revival kick-started by the 208 and 308, and now really getting into gear with the 2008, 3008 and 5008 SUVs. Which, ironically, might be the biggest threat to this second-generation 508.

Even Peugeot admits this is a tough segment in Europe, declining for a decade before stagnating for the last four years. So the outgoing car, as good as it was, sold in relatively small numbers to its most loyal fleet customers, a handful of job-need drivers, and a few user-choosers, while SUVs take up two-thirds of its ‘true fleet’ mix.

But this new car is as radical an overhaul as the new Pound coin. The new 508 is more Arteon than Passat; shorter end-to-end, with a roofline as low as a 406 Coupe and the frameless windows to match. It’s not a new idea per se, but, with its Tony Montana-inspired daytime running lights, it’s a distinctive car with on-road presence few of its rivals can match.

Peugeot isn’t pushing volumes in the UK. It’s expecting two-thirds of customers will go for the sportiest GT and GT-Line versions, and the forthcoming estate – which is arguably even better looking than the fastback – will certainly help. With stylish wood, leather and aluminium throughout, it feels genuinely upmarket in either GT trim, and the front seats are approved by Germany’s campaign for healthier backs (AGR). It’s impressive, but aesthetically compromised in lower trim levels.

Luckily, it’s not style over substance. The digital instruments, perched on the dashtop as in all new Peugeots, are an acquired taste but they tend to fit average-sized drivers, while infotainment sub-menus are accessed via a row of silver piano key switches under the central display. Climate control settings are still on the touchscreen, but are now always visible, and Android Auto and Apple CarPlay app streaming offer an alternative to the dim-witted factory navigation when needed.

From launch, engines comprise turbocharged 1.6-litre petrols, at 178bhp or 223bhp, and a choice of 1.5-litre 128bhp, and 2.0-litre 158bhp and 180bhp diesels. Fleet take-up is still expected to be largely diesel-powered, particularly the smallest engine – which is actually slightly less gravelly than the 2.0-litre units, more willing around town, and emits as little as 98g/km CO2 (NEDC Correlated) with the new eight-speed gearbox. However, as the larger diesels emit as much CO2 as their petrol counterparts, and a plug-in hybrid with a 30-mile electric range is due in 2019, there are some tax-efficient alternatives for the right users.

Perhaps the biggest step forward is the way it drives. The 508 is relatively light, cornering with confidence and feeling responsive thanks to the quick steering and small wheel. Peugeot’s eight-speed gearbox (standard fit on all except the small diesel) is very smooth, too, though the steering paddles are fixed to the column instead of the wheel, and have some sharp moulding marks underneath. This another example of a brand on a roll, even if its SUV stablemates mean it’ll never be as ubiquitous as it deserves to be.

What We Think:

The 508 feels a cut above most rivals – good enough to target premium brands, and question the need for an equivalent DS.