With the Koreans and other budget car manufacturers nipping at its heels, Peugeot appears to have been making a concerted effort to move its cars a little further upmarket, and nowhere is this more evident than in the 308.
The car is grown-up in more ways than one too, the 308 feeling much bigger than its 307 predecessor. It all adds up to a feeling of premium airiness, and Peugeot has prioritised upgrading the interior over the exterior styling.
The 308 might look very similar to the previous-generation car, but is an all-new design. That open-mouthed grille is on the way out in the near future, which can't happen soon enough.
The interior is a huge step forward for the French company - we dare say it is even on a par with segment leader Volkswagen. The plastics used on the dash are pleasant to the touch and the whole thing gives a very upmarket ambience. Things are lifted even further with the option of a full-length glass roof which floods the cabin with light.
It's a good idea to be judicious with the upgrades, though - the 308's suspension copes well on its standard 16-inch wheels but the ride gets progressively worse as the rims get bigger. The 308 is never going to be a boulevard poser anyway, so it's best to err on the side of comfort.
The driving experience has been much improved over the 307's lifeless steering too - the 308 is much more assertive and keen to go round corners. It's not quite up there with the Ford Focus, but will put a smile on a keen driver's face.
The 308 gets very expensive as you near the top of the model list - paying over £20,000 for a Peugeot hatchback is not something we can swallow just yet. Better to pick an entry-level car and pick a few choice items from the options catalogue.
Engine-wise, the 1.6-litre THP petrol with its 150bhp is our favourite. It's eager to rev and feels perky on the move, pulling the car from 0-62mph in 8.8 seconds. The higher-capacity diesels are strangely unsatisfying: if you want to fill from the black pump we'd suggest going for the mid-range 1.6-litre HDi 112 unit.
The 308 has improved over its predecessor more than its conservative styling development would have you believe - a plush cabin and a much better drive. Definitely worth thinking about.