Joining the well-regarded Toyota Aygo and Citroen C1 urban runabouts is Peugeot’s new 108 – the third car in the Japanese/French alliance. Sharing the same platform and engines, the 108 gets its own look in keeping with the latest Peugeot models: comprising a chrome grille, narrow, tapering headlights and distinctive claw print rear lights.

In addition to the usual safety features (Six airbags, ABS, Electronic Stability Programme with Hill holder), electric windows, central locking and LED running lights are standard across the range. On all bar base level Access trim, there’s a multi-function steering wheel, 7” touch screen and air conditioning, while plusher Allure adds rev counter, keyless entry, auto lights and rear reversing camera.

First impressions of 108’s interior are mainly positive. This high-spec Allure model boasts porcelain coloured dash inserts, an attractive piano black finished centre control cluster and touch-screen infotainment system. It’s all easy to operate, as is the rest of the switchgear – although some of this does feel a bit flimsy. The hard scratchy plastic door cards are unlikely to win many fans either.

Despite its diminutive dimensions, the 108 manages to offer genuine 4 seater accommodation. The one-piece moulded front seats look good and are comfortable. Height adjustment of the driver’s chair is standard on all but the entry level trim, too. Entry to the rear is a bit of a squeeze, as the rear doors don’t open that far, but there’s plenty of head, shoulder and legroom, even for taller occupants.

A city car is never going to boast the biggest of boots, and the 108’s 196 litres remains small, even though it’s 139 litres larger than the old 107’s. However, this extends to 760 litres with the 50:50 split seats folded and the 20mm lower boot sill makes for easier loading.

The 108 comes with a choice of two three-cylinder engines: a 68 bhp 1.0-litre carried across from the 107 and the new 82 bhp1.2 Puretech – as tested here. Upon start-up the motor sounds quite unrefined, with vibration permeating the cabin. Initially it also seems difficult to pull away and crawl along in traffic smoothly – the car faltering, until you learn to overcompensate with more revs as the clutch bites, which sorts the problem.

Paradoxically for a modestly powered city car, the 108 actually comes into its own at higher speeds, where refinement also improves. Liberal application of throttle overcomes the comparative lack of torque (116 Nm) and sees this French tot zip along enthusiastically (0-62 mph in 11 seconds) against a characterful three-cylinder wail. A slick, ‘knife-through-butter’ 5-speed manual gearbox and accurate, nicely weighted steering adds to the car’s appeal. The 108 makes a fine fist of motorway work, too – with rather intrusive road roar (at higher speeds) being the only annoyance.

Verdict:

Peugeot’s newcomer might be a little way off class best, but the 108 is a solid improvement over its venerable 107 predecessor. This French city-car is also capable out of town, good looking, well equipped and surprisingly fun to drive.

Tech spec:

Peugeot 108 Allure 1.2 VTi 5dr
Price £11,395
Engine 4 cyls in line, 1199cc, petrol
Power 82bhp at 5750rpm
Torque 116 Nm at 2750rpm
Gearbox 5-spd manual 
0-62mph 11.0sec
Top speed 106mph
Economy 65.7mpg (combined)
CO2 99g/km 
VED £0
Insurance Group 11E