Road tax-eliminating supermini revealed

It achieves a combined fuel economy of 74.3mpg and emits 99g/km of CO2, making it exempt from road tax.

Two variants of the green Peugeot 207 will be available in both three-door and five-door guises – the Economique and the Economique-plus.

Both will be powered by a 1.6-litre HDi diesel engine which produces 90bhp. This is capable of accelerating the 207 from 0-62mph in 11.7 seconds and up to a maximum speed of 115mph.

Peugeot has fitted low rolling resistance tyres to the 207 Economique and made adjustments to its aerodynamics to increase fuel efficiency.

Ride height has been lowered by 5mm and a two-part rear spoiler has been fitted, wrapping around the back windscreen to lower wind resistance.

A gear-shift indicator also helps to save fuel by instructing the driver to change gear at the correct time.

Other standard features include rear LED lights, ABS brakes, Electronic brake force distribution and electronic brake assist, electric windows, CD player and four airbags.

The Peugeot 207 Economique-plus adds air-conditioning, heated door mirrors and a trip computer. Sat-nav, Bluetooth and USB connectivity are available as optional extras.

Prices start at £12,995 for the three-door Economique and go up to £14,495 for the five-door Economique-plus. This makes it £2,500 more expensive than the standard Peugeot 207.

The Peugeot 207 Economique goes on sale in October.

By Dominic Sacco