Peugeot has revealed details of its new sub-100g/km of CO2 207 hatchback.

Available in three and five-door bodystyles, the Economique model is powered by a Euro 5-compliant 1.6-litre HDi diesel engine delivering 90bhp. It returns a claimed average of 74.3mpg and at 99g/km of CO2 it escapes VED.

To lower emissions, Peugeot has lowered the ride height by 5mm, made the front-end more aerodynamic by tweaking the bumper, added an underbody tray to smooth airflow, fitted aerodynamic wheel trims and a rear spoiler, plus adopting low rolling resistance tyres.

Prices start at £12,995.