In case you’d missed it, the Peugeot 308 is the European Car of the Year 2014. That means it has to be pretty exceptional; at the very least, it’s made some major inroads over its predecessor, the 307, which rarely matched up to its rivals in this competitive sector. While it’s not a country mile ahead of the pack, the 308 is now on a par with the class leaders thanks to its Germanic looks, driving dynamics and refreshing high-quality interior. It gives the French carmaker a genuine chance against the VW Golf and Ford Focus for the first time in years. Performance 3.5/5 On test, we drove the 1.6-litre diesel Blue HDi producing 120bhp. Performance figures are average with the benchmark sprint taking 11.6 seconds. Compare that to the equivalent 108bhp VW Golf and you’ll see that in a straight line the Golf is 1.1 seconds quicker. In black and white, that’s quite a difference but on the road the Peugeot never feels underpowered. Our car had a top speed of 122mph and was mated to a smooth shifting six-speed gearbox. Ride and handling 4/5 Shedding pounds gives you more energy, but shedding kilos well that’s another story entirely. That’s what Peugeot has achieved with the 308, reducing its weight by 140kg. That makes the car seem like a spring chicken compared to the bloated heavyweight 307. On the road is where you find the starkest difference between the two Peugeots. The 308 is on another planet when compared to the 307; it’s fun to drive and has a comfortable ride. It still lacks the dynamics of a BMW 1 Series or a Ford Focus but, nonetheless, the 308 is a revelation. Peugeot has its mojo back. Interior 4/5 The 308 has one of the best interiors in the whole of the Peugeot line-up. It’s a plush place to spend time, while tech fans will love it thanks to the 9.7-inch touchscreen. It covers all multimedia including sat-nav, audio, mp3 player, aircon and Bluetooth connectivity. Other highlights include 16-inch alloys, electric handbrake, rear parking sensors, leather steering wheel and gearstick and automatic headlights with follow-me home function and wipers. Costs 5/5 Prices start from £19,495 for our test car, the Active Blue HDi 120. The engine has CO2 emissions of 82g/km and averages 91.1mpg. In real-world driving, expect to achieve around the high seventy mark – not quite the official figure but a heady stat for anyone interested in cost-effectiveness. Verdict 4/5 At just under 20K, this 308 is competitively priced against rivals. It also comes with one of the most frugal engines in the sector. Add in loads of tech and attractive looks and you have a cracking offering from the French marque.