If you think that small cars don’t get luxury and tech, think again.

This latest 208 impresses hugely – not least in making you feel like you’re in a bigger car than you are.

Let’s not forget that this is the baby hatchback of the range, but first up looks-wise Peugeot has done a superb job, giving the new 208 a distinctive, sporty and purposeful look that makes it stand out more than the average small hatch.

Inside is where it really doesn’t feel like a runaround small car.

Materials are top notch and then there’s the excellent touch screen and 3D i-Cockpit, which gives the all-digital dash a really special feel, with graphics that are, as the name suggests, given a 3D definition.

The design, tech and feel mean this feels like a car above its level.

Spec-wise it’s the familiar Peugeot offering – Active, Allure, GT Line and GT.

All cars get safety tech like lane keeping assist, speed limit recognition and driver attention warning, as well as the i-Cockpit, colour touch screen, electric windows, air con, alloys, digital radio, Bluetooth and smartphone integration.

Pretty impressive spec for the baby of the range.

Allure gets bigger wheels, automatic air con and wireless phone charging among its additions, while GT Line, which we drove, gets visual tweaks such as wheel arch extensions, door mirror shells, chequered radiator grille, chrome exhaust and lower rear bumper, as well as sporty touches inside.

Top end GT gets fully automated parking assistance, connected nav, adaptive cruise control and heated front seats among other things.

Drive wise, the new 208 doesn’t disappoint either.

The petrol we drove, the 1.2 PureTech with 101hp, was a really nippy number, with plenty of poke that backed up the GT Line badge with some performance, delivered through a super-smooth automatic box.

It handles neatly and feels nicely connected thanks to Peugeot’s compact steering wheel, which really does play a role in the driving experience. It’s good fun and compliments that lively motor.

On-paper mpg comes in at 44.3 to 50.3mpg, which we weren’t too far off on the cruise, while high 30s is more likely around town.

You can also have your petrol with 75hp or 130hp, with the 130 actually claiming slightly better economy figures than the 100.

There is a solitary diesel, the 1.5 BlueHDi 100, which offers 60.8 to 71.4mpg.

There’s an all-electric one too, which we hope to try later in the year, which boats 136bhp and 62mph in 8.1 seconds, alongside a range of 211 miles, which will be pretty impressive if achievable in the real world.

Whichever power you opt for, this new 208 feels like a huge leap forward for this class of car.

Prices begin at £16,250, rising to just shy of £30,000.