The newest version of Europe's most popular small car, the Peugeot 207, has just landed in Australia boasting a host of specification upgrades and styling enhancements.

With its three body shapes, the 207 moved into pole position in the European small car market in 2007 and then remained there in 2008 with sales of 423,700 units.

Over 1.5 million Peugeot 207s have been produced globally since the model's launch in 2007.

The upgrade incorporates the entire 207 range – hatch, GTi, CC and Touring – and all receive specification and styling changes.

The 207 remains available in XR, XT and GTi models, the 207 CC is available with the naturally-aspirated 1.6-litre 88kW engine and the turbocharged 110kW version, while there is a new Touring model, the Outdoor, available with 1.6-litre petrol and diesel engines.

Key specification improvements include:

  1. Six airbags now standard on entry-level XR model
  2. Glass roof standard on all XT models
  3. Standard dual-zone climate control on XT
  4. Rear privacy glass is now standard on XT and GTi
  5. An electrochrome rear-view mirror is now standard on XT
  6. Cruise control standard on all 1.6-litre models

From the front, the new 207 is instantly recognisable as different to its predecessor.

The one-piece lower front panel redefines the contours of the air intake and introduces offset circular fog lights (where fitted) located laterally in two aerodynamic "recesses" – an arrangement that visually widens the car.

The previous 207 saw the fog lights incorporated into the large central air intake.

As with other Peugeot models, the new 207 features remarkable attention to detail in its finishing touches, with chrome detailing featured on the XT, GTi and CC Turbo versions to enhance the premium look of the vehicles.

Viewed from the rear, the new hatchback and CC models now have new, hi-tech rear lights incorporating LED technology, something of a rarity in this market segment.

In the red section, the rear lights consist of two horizontal panels of 6 LEDs bordered on the inside by a vertical panel of 3 LEDs forming a luminescent parallelogram, while the white section houses the reversing light and direction indicator.

The lower rear bumper panel is now painted in body-colour on hatchback and CC models equipped with rear parking assistance, adding a further touch of distinction to the car's visual identity.

The increased upmarket exterior of the 207 hatch is completed with a range of new wheels named after Australian cities: 
- the new eight-spoke 15-inch "Brisbane" wheel cover is standard on XR and XT models
- the new 16-inch "Canberra" alloy wheel with five large spokes is optional on the XT.
- the stunning new 17-inch "Melbourne" two-tone alloy wheel with eight diamanté spokes is the standard wheel for the GTi.

Two new colours, Inari Blue and Moroccan Red, are available in the ten-strong 207 hatch colour range.

The 207 CC also features two new colours, Inari Blue and Bianca White, while the GTi adds Moroccan Red to create a colour range of six.

In XR guise, the 207 hatch is available with two engines – a 1.4-litre and a 1.6-litre petrol four-cylinder.

The 1.4-litre unit is available with a 5-speed manual transmission and produces 65kW of power and 133Nm of torque, while the larger engine is available only with a 4-speed automatic and produces 88 kW and 160 Nm respectively.

The 1.6-litre petrol engine is also available in the XT and CC models, where it comes with a 5-speed manual gearbox and the 4-speed automatic.

The XT is also available with a 1.6-litre HDi FAP turbocharged diesel engine producing 80kW and 240Nm of torque and is available with a 5-speed manual transmission.

The 207 CC Turbo features a 1.6-litre turbocharged petrol engine producing 110kW of power and 240Nm of torque, while the GTi retains its version of the same engine producing 128kW and 240Nm.

A key strength of the 207 continues to be its passenger compartment, with its flowing design incorporating a modern grain finish, featuring a new air-conditioning control panel, and enhancing its prestigious nature.

The XR, XT and CC models feature original new metallic detailing reminiscent of the vintage world of aviation. The seats are covered with a soft-patterned woven fabric, accompanied by a matching Sports Cloth.

The passenger compartment of the 207 GTi continues its kinship with motorsport and features bucket seats with integrated head restraints. They have a black Alcantaratrim accompanied by leather and a mesh cloth and come straight from the world of high-level motorsport.

The 207's instrument panel has been revised with the introduction of a redesigned heating/ automatic air conditioning control panel finished with meticulous precision.

In addition to the updated design, the new rotary controls are much more ergonomic: located in their own housing, they benefit from a positive position location and are smoother to operate.

Remote-control closing of the windows when the plip lock button is held down is available on XT, GTi, CC models and Touring Outdoor – if a sun roof is fitted, it is closed at the same time.

A combined Bluetooth / USB port package is available as standard on the GTi, and as an option on the XT, CC models and the Touring Outdoor.

Despite the upgrades across the 207 range prices remain exactly the same, starting with the XR 1.4-litre at $22,490 (Recommended Vehicle Price).