Car manufacturers always have a tricky problem: juggling interior space with exterior dimensions. The temptation is to suggest that if you want more interior space, go for a full-blown SUV, but a lot of folks aren’t keen on the idea. So what about an estate? Nope, not their cup of tea either.

Peugeot has a solution.

It’s the Peugeot 408, and I think it’s rather distinctive and even a touch sporty. You could call it a coupé SUV or a fastback, but in essence, even though it might look a bit saloon-ish, it’s a 5-door hatchback.

As with all of the recently launched Peugeots, it stands out from an increasing carbon copy crowd, and it’s a darn sight better to look at than its predecessor, the 407 (oh dear). Despite all of the changes, the 408 features some typical Peugeot DNA; it’s comfortable, good to drive, and well-equipped. If you haven’t been in a Peugeot lately, you need to go on a refresher course because the interiors are ultra-smart with a definite premium look and feel. The fascia is hi-tech. Peugeot calls it the i-Cockpit. Granted, opinions are split, but we like it… mostly.

In terms of engine options, you can choose from petrol and the one you see here, the Peugeot 408 Hybrid. As with a lot of manufacturers, Peugeot is dropping diesel like a stone - there’s no oil burner for the 408. Every 408 comes with an 8-speed auto box linked to the front wheels.

If you want to stick with straightforward petrol power, there’s a three-cylinder 1.2 litre 131bhp unit available in all levels of trim. Prices start at a shade over £31k. Go easily and Peugeot reckons you’ll get 48mpg. 0-60mph takes 10.4 seconds so it’s no flying machine but perfectly adequate.

The 408 PHEV (plug-in hybrid electric vehicle) is much sharper because it gets a 1.6 litre petrol engine and a battery-powered motor. The headline figures are impressive; if you use the hybrid technology to its full extent, you can travel for up to 40 miles on battery alone and, if you drive carefully, achieve a staggering 269mpg. Okay, you’re highly unlikely to get that, but in the real world, if you use the hybrid technology to its full extent and have a facility to charge the battery at either end of your journey, you could, theoretically, complete a daily 40-mile commute without using any fuel. Emissions in the 222bhp model are low (from 25g/km) which means the hybrid Peugeot 408 will be great for company drivers.

You can also get a slightly cheaper hybrid (from £39,900) which develops 178bhp. In terms of performance, there’s hardly anything in it and the 178bhp version will still do the 0-60mph dash in a shade over 8.0 seconds.

Out on the road, the 408 is fun to drive. You can choose from Hybrid, Sport or Electric driving modes. Most of you reading this will use Hybrid drive and let the wizardry take care of everything. The steering is lightly weighted which, when you factor in the small steering wheel, means you can really flick the 408 around on a country lane. The ride is a tad on the firm side for some folk at town speeds, but once you get moving on the quicker stuff, the car handles well and is very comfy. Refined too.

The interior is a show-stopper. Smart is the word. The first thing you notice is how small the steering wheel is. Think of a medium-sized pizza. This can be a bit annoying because if you like a high seating position, the wheel doesn’t lift high enough so that you can see the dials through it. Conversely, if you lower it so that you can peer over the top, you end up with the rim of the wheel very close to your legs. You’re better off driving with a low seating position.

There are three trim levels: Allure, Allure Premium, and GT. Equipment levels are good with even the entry Allure trim coming with sat nav, reversing camera, colour touchscreen, LED headlights, DAB radio, smart alloys, and rear parking sensors. Not much else you need really, although it would be handy if Peugeot provided a rear windscreen wiper. After 100 miles or so of driving on filthy motorways, it gathered a lot of grime.

The Peugeot 408 is roomy and, despite the swoopy roofline, there’s plenty of headroom in the rear. The boot is a decent size too. In other words it’ll be an ideal car for a family who take a load of clobber with them on holiday.

If you are thinking about switching to a fully electric family car but aren’t quite sure whether it’ll suit your lifestyle, (there’s an all-electric 408 in the pipeline), this Peugeot 408 Hybrid could be an ideal choice. Yes, it costs around eight grand more than the 1.2 litre version, but if you can make full use of the plug-in hybrid facility, you’ll recoup that eventually. And, you’ll have more fun driving it thanks to the extra power, especially if you regularly travel with a decent load.

Decisions, decisions.

Words: Graham Courtney
Pictures: Peugeot