Sector: Supermini Price (August 2013): £18,095 Fuel: 74.3mpg CO2: 99g/km

Peugeot has drawn so much media coverage with the 208 GTI, a car that marks the long-awaited arrival of a credible small hot hatch, that the XY launched alongside it has been somewhat undersold.

C-segment downsizers are firmly on Peugeot’s radar here, and unless you’re craving the performance of the GTI, its luxury-focused sibling offers a good chunk of its desirability for entirely reasonable running costs. The 208 is attracting top-heavy sales in the UK, and short of its sportiest model the XY sits at the top of the pile.

Peugeot has, of course, done rather well with specced-up superminis over the years. Think of the XY as being a spiritual successor to the Lacoste edition 205s, or perhaps for the plus Roland Garros-badged models that have added a little sparkle to the small end of its range for several generations. This feels as chic as you’d ever want a 208 to be.

Available only with three doors – the XY replaces the Feline trim found in the five-door – the model naming has less to do with male chromosomes than scientifically-minded buyers might think. Instead, the name stems from luXurY, according to Peugeot, and it’s really not lacking here. Trim options come down to picking between soft Nappa leather and alcantara, each surrounding lashings of chrome, aluminium and plush purple accents.

There are five drivetrain options for the XY, including three sub-100g/km diesels and a 155bhp version of the GTI’s 1.6-litre turbocharged petrol. The e-HDI 92 is entirely adequate in a car of this size, but if you are downsizing, the e-HDI 115 may be the way to go. This is certainly brisk enough to replace a larger car on motorway duties, if a little high on road and wind noise at high speed.

At each corner, the 17-inch wheels are tucked under slightly flared arches. The XY has benefited not only from a few of the GTI’s styling cues, but also its wider front and rear track – at 3mm and 18mm respectively. The pairing of wheels and chassis upgrades result in a much improved driving experience, sitting somewhere between the basic 208 and the range’s brawny spearhead.

If there’s any criticism to be made, it’s that the XY hasn’t quite drawn the same level of excitement as the GTI. This may not have the performance to match its hot hatch sibling, but this much luxury at under £20,000 makes the XY a very tempting package.

Verdict:

Peugeot has rubbed off a little of the GTI’s sparkle into one of its more efficient siblings. The XY adds the style and luxury to really show off the neatly-executed 208’s design, but may be a little harsh for regular long-distance use. Go for the e-HDI 92 and you’ll have a thoroughly well-rounded city car.