Peugeot is looking to grow fleet sales on the back of its environmental message and improved model quality.

Last year the carmaker took a 16% share of the sub 120g/km CO2 market for retail and fleet new car sales and 13% of the sub 130g/km sector – putting it at number one in both.

But Peugeot fleet director Phil Robson is concerned that fleets are failing to understand the CO2message.

“They don’t make the link between low CO2 and high MPG – the savings can be phenomenal,” he said.

“We are working with our dealers to get the message across, especially on tax and capital allowance, to advise and give fleets direction.”

He is also pushing quality.

While acknowledging the damage caused by early quality issues on the 307, be added:

"The 308 is the most reliable car we have ever made.

"Warranty and defects are rock bottom.”

Peugeot’s share of the fleet market has fallen from a peak of 8-10% in the early 2000s to 5.8% last year, after a decision taken four years ago at board level in France to withdraw from some fleet business.

The company is now looking to raise fleet penetration, but not in the rental and short-term contract hire sector.

Last year it reduced rental volumes by 27% on the back of a 50% cut the previous year.

Robson is confident Peugeot will pick up fleet business in the second half of the year – particularly with larger fleets - as manufacturers stop offering tactical deals and large discounts.

“The theme of this year will be price rises.

"There has already been one round and it will happen another couple of times in the market this year,” he said.

“Prices have increased by 10% in the last nine months, but the sterling fell by 27% against the euro – we are carrying the burden.”