Cheaper Peugeot 208 on horizon for Oz

PEUGEOT is considering releasing a de-specified and less expensive version of the 208 hatch to take on entry-level versions of the Renault Clio and Volkswagen Polo.

Right now the cheapest Peugeot available in this country, the Active VTi, kicks off from $18,490 plus on-road costs, making it $1700 more expensive than the Clio TCe 90 (from $16,790) and $1500 above the Polo Trendline (from $16,990).

While equipment levels are similar, the Renault includes the advantage of turbo power while the Volkswagen comes with a significantly larger engine.

One of the options open to Peugeot is to import the actual base 208 model available in Europe, the Access, offering a 1.0-litre version of the 60kW/118Nm 1.2-litre three-cylinder petrol engine standard in the current Australian entry-level 208 Active.

Compared to the bigger unit, it is down 100cc, 10kW, 33Nm and 0.2L/100km, while – in UK spec at least – it also loses niceties like some exterior and interior brightwork, the touchscreen in the middle of the dashboard, electric mirrors and a split in the rear backrest.

Additionally, Peugeot could elect to import the base 208 in the same three-door body style as the range-topping GTi, though Australians do much prefer their light- and small-cars to have five doors.

Speaking with GoAuto last week, newly appointed general manager for importer Sime Darby Distributors, John Startari, said that while their were no concrete plans afoot to lower the asking price, Peugeot must also be prepared to react to changing market conditions.

“We believe on its current proposition, in terms of the specification standard in that vehicle, the car is very competitive,” he told us, at the launch of the 208’s sub-compact SUV cousin, the 2008.

“Obviously we have to react to market forces, and that’s an ongoing process, and there are product managers dedicated to that on a daily basis.

“With our current strategy, we believe the 208 forms a strong value proposition, and the sales of that car leads in the greater than $25,000 (VFACTS) light-car segment by a long shot, almost double that of its nearest competitor.

“But that’s not to say that we are complacent, and we are always reviewing our pricing strategy, and that is a very price sensitive market, so it gets a lot of focus from our product team.”

Meantime, despite the news that Renault is poised to offer the latest Clio range with a turbo-diesel option later in 2014, it is unlikely that the 208 will follow suit any time in the near future.

“I don’t think. In Australia, diesel sales are negligible in the light-car segment,” Mr Startari said.