SECTOR: Lower-medium PRICE: €17,800-€28,350 FUEL: 3.7-5.8l/100km CO2: 95-134g/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 optional large wheels it has 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, with the familiar 1.6-litre e-HDI 115 the most popular. 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 capable on the road, while CO2 emissions of 95g/km will further reduce costs. It’s slower, but not significantly so.

New three-cylinder turbocharged petrol engines and a trio of Euro6 compliant BlueHDI diesels will 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 3.1l/100km 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 feature slimmer and more attractive all-LED headlamps and reshaped front bumper, which make it look more of a premium product than entry-level models.

Equipment is generous across the range, though. Most feature Peugeot’s minimalist new dashboard, which puts most controls into an intuitive touch screen in the centre of the dashboard, bundled with standard-fit satellite navigation. Important functions are accessed using shortcuts on the map display, and while it lags occasionally it’s an easy system to use and a unique selling point too.

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 passengers.

So while Peugeot has kept the 308 nameplate, it’s the only surviving part of the old car. Its successor has the all the right attributes to become a thoroughly successful part of the C-segment.

Verdict:

Great to look at, better to drive and with segment-best economy coming next year, the 308 feels like it has skipped a generation and should be a very popular fleet model.

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