Peugeot yesterday unveiled the 207, the follow-up to the giant French carmaker's success of the 206. Launched at Michael Attard Ltd's head office, at Blata l-Bajda, the 207 is billed not as a replacement to the 206 but an alternative car "which promises to put the fun back into driving".

The share of the small car segment in the European car market has grown from 31 to 33 per cent between 1998 and 2005 and is set to increase over the next five years. During the same period, thanks to the success of the 206, Peugeot has seen its car sales in the B (small) segment increase by 85 per cent.

The design of the front of the 207 mirrors Peugeot's new visual identity with a single air intake framed by large high-tech headlights.

The 207 has been designed to withstand impact levels even more severe than those applied in regulatory tests, the makers say.

The starting price for the urban version three-door 207 is Lm6,950, and the turbo diesel starts at Lm8,100. Flexi financing arrangements and part exchanges are being offered.