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The effect is already noticeable – sales of big cars and 4WDs have slowed and are in decline, while sales of smaller, more fuel efficient vehicles are on the up and up.

It has a positive side – less greenhouse gas and more room on the road.

The manufacturers of diesel and hybrid cars seem ideally positioned to take advantage of the prevailing climate. Inquiries on hybrids are escalating and diesels are also becoming more popular as manufacturers, particularly the Europeans add them to their lineup.

Peugeot has been selling diesel cars here for possibly 30 years or more. They have been making them for longer and are considered to be leaders in the field.

A new 307 Hdi diesel range recently became available here in 1.6-litre and 2.0-litre engine capacity. Both comply with the strict Euro 4 emissions regulations.

They are high pressure, "common rail", turbo diesels with twin cams and 16 valves.

We've been able to get hold of a 1.6 Hdi hatch for a while to see just what it's like having an "oiler" in the garage.

The first thing we noticed is the distance it will go on a tank of fuel – up to 1200km without much trouble.

At our current useage, that means three weeks between refuelling which costs about $70 on current prices.

It's cheap motoring.

The other thing we noticed was how much get up and go the 80kw/240Nm, 1.6-litre engine delivers. It goes like a 2.0-litre petrol and has especially strong mid-range response which is great on the freeway.

Outside the car at idle speeds it sounds noisier than apetrol model but once underway, there's precious little noise at all.

The five speed manual gearbox is smooth shifting and the car is easy to drive apart from a clutch pedal set higher than the brake pedal.

The 307 is a bit of a glamour to look at and practical too offering room inside for five and a large boot.

There are some really cool features like the remote window wind up function operating from the key fob.

At a snip under $30,000, the 307 Hdi 1.6 is possibly one of the best priced super economy cars on the market, challenging even the hybrids, one of which costs a lot more.

Read the full 2005 Peugeot 307 review

Peugeot 307 2005: 2.0 HDi

Engine Type Diesel Turbo 4, 2.0L
Fuel Type Diesel
Fuel Efficiency 6.8L/100km (combined)
Seating 5
Price From $2,640 - $4,180
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Disclaimer: The pricing information shown in the editorial content (Review Prices) is to be used as a guide only and is based on information provided to Carsguide Autotrader Media Solutions Pty Ltd (Carsguide) both by third party sources and the car manufacturer at the time of publication. The Review Prices were correct at the time of publication. Carsguide does not warrant or represent that the information is accurate, reliable, complete, current or suitable for any particular purpose. You should not use or rely upon this information without conducting an independent assessment and valuation of the vehicle.

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