Peugeot says the new 108 minicar is bigger, greener and more premium than the car it replaces, the 107.
"The new 108 participates in the brand's move up-market," Peugeot Product Director Xavier Peugeot said in a statement.
The 108 will debut at the Geneva auto show next month alongside its new-generation Czech-built platform mates, the Citroen C1 and Toyota Aygo. The refreshed trio of minicars will be offered in three- and five-door bodystyles.
In a move designed to align the 108 with near-premium rivals such as the segment-leading Fiat 500, Peugeot will offer a range personalization options in the minicar, including six interior trims, and features such as a folding canvas sunroof.
Automakers are moving away from practical, conservative minicars in favor of near-premium models such as the 500 and the Opel/Vauxhall Adam, which have grown from zero market share a decade ago to 20 percent of the segment in 2013.