The model is a heavyweight in the lower-medium segment where it fights for space alongside the Ford Focus, VW Golf, Renault Megane and Vauxhall Astra. The lower-medium segment accounted for 28 per cent of the UK new car market in 2004 and is this year outselling the supermini sector for the first time since 1999.
The outgoing 307 was the 10th best selling car in the UK last year with sales of 58,700. With 26,000 diesel registrations, it was the sixth best selling oil burner. It is also the second biggest seller in the Peugeot range behind the 206, with volumes balanced between the retail and fleet sectors.

Strong beginnings
Based on a PSA PeugeotCitroen platform, the 307 was launched as a three and five door hatchback in 2001. Estate and SW models were added the following year and the CC completed the line-up in 2003. The 307 was voted European Car of the Year in 2002.
According to Peugeot there are now 51 models competing in the C-segment compared to just 29 in 2001.
Of the 226,000 UK sales since launch, the hatchback derivative of the 307 has taken over three-quarters of volume, with the SW taking 11 per cent, the estate 9 per cent and the newcomer to the range the CC just 4 per cent.
With 2.2 million units built in the three and a half years to the end of 2004 Peugeot said the 307 had eclipsed the performance of its predecessor the 306, with production levels having been ramped up by almost 50 per cent.

The buyer
A Peugeot spokesman said hatchback and SW customers were typically at least 35 years old with men taking at least 60 per cent of sales. Although CC buyers had an age profile about five years lower he claimed 64 per cent of customers were couples with children. He said the CC was also popular with families as a second car.
The latest 307 is available with two new 2.0-litre petrol engines and a new 1.6-litre 90 bhp diesel which replaces the original 2.0-litre 90 bhp HDI unit. Prices start at £11,200 for the entry-level hatchback and rise to £21,000 for the flagship CC.
While the 307 is undoubtedly an important model for Peugeot it is the supermini segment that is the brand's real power base. The ageing 206 was the fourth best seller in the UK last year with 86,600 registrations — weighted heavily towards the retail market. Together with the 107 and the 1007 the spokesman claimed Peugeot commanded 15 per cent of the B-segment compared to 8 per cent of the total market.
The introduction of the 207 next year will be a boost.
“Next year we'll have the full range,” the spokesman said. “We're a product rich franchise.”

B-segment backlog
He admitted that the delay in replacing the 106, which was withdrawn in 2003, had been a handicap for the brand. “We had no entry car in the B-segment where we have been successful. Showroom traffic was pulled in by the 106,” he said.
The 107 is produced on the same platform as the Citroen C1 and Toyota Aygo. “It took longer to come to market than planned,” the spokesman said but added that all 7,000 models produced for the UK market this year had now been sold.