Peugeot launches tax-free 207

From October, Peugeot will sell a supermini that qualifies for free road tax. The 207 Economique is powered by a 1.6-litre HDi diesel engine generating 90bhp and emitting just 99g/km of C02 - that's just one g/km below the threshold for zero-rate VED.

It also means the newcomer boasts highly impressive fuel economy, registering 74.3mpg on the combined cycle. It's still got a reasonable amount of diesel pulling power too, so 0-62mph is done with in 11.7 seconds and its top speed is 115mph.

There's a gearshift indicator to make sure the driver is doing his bit to maximise economy, but it is aerodynamic changes that have formed the majority of Peugeot's efforts to make this 207 so clean and economical. It's fitted with Michelin 'VLRR' (very low rolling resistance) tyres wrapped around wheels capped by aerodynamic plastic wheel trims. The ride height is lowered, the bumper is re-shaped - as are the side sills, the air intakes are changed and the underside of the car is smoothed out - all of which make the car cut through the air more easily, reducing drag and increasing fuel efficiency.

Price start at £12,995 for a three-door Economique, up to £14,495 for a five-door Economique +, which adds air conditioning and electric heated door mirrors to the standard specification.

Mark Nichol