PEUGEOT is confident that its next small model will secure a 2% share of all new car sales in Britain. And the Coventry-built supermini is destined to play a leading role in driving the French firm's slice of the UK market through the 10% barrier, believes managing director Richard Parham.

'We will be very disappointed if this model fails to hit the two per cent mark in its first full year. But I accept the business will not be entirely incremental - there will be some substitution from buyers of the 106 who want to move up and from 306 owners who might want to move down,' said Parham at Geneva.

The biggest clue yet to the styling of the new car - codenamed T1 and thought likely to be badged as the 207 - is the stunning 20 Coupe Cabriolet, which made its debut in Geneva. Parham said Peugeot's current high sales were providing the company with a perfect platform for the launch of the T1 in September.