Peugeot 3008 HYbrid4 due 2011

It's not the first Peugeot with a diesel-electric hybrid engine. The company has made small numbers of 308CC diesel hybrids for testing in Madrid, one of which came to the Sydney Motor Show as a display vehicle.

Peugeot's 3008 HYbrid4 will arrive in Australia about this time next year boasting fuel economy of 3.8 litres per 100km and pumping out only 99g of CO2 per kilometre which is better than some scooters. Peugeot Automobiles Australia spokesperson Kirin Tipping says it will appeal to people who want an SUV "with a clear conscience".

However, this will be the first full production model diesel hybrid. It will be followed by an RCZ sports car in early 2012, says Tipping. "We are also definitely considering entering a diesel-hybrid in the Le Mans," she says.

"We've done extremely well in the past, winning it last year. And we're actually going to have that car at the Sydney Motor Show in October." The 3008 HYbrid4 is powered by a 2.0 litre 122kW HDi diesel engine driving the front wheels and a 27.5kW electric motor driving the back wheels with the ability to operate in all-electric mode and produce zero emissions.

There is no mechanical transfer box or prop shaft connecting the two powertrains. Drive is controlled electronically.

Tipping says the vehicle will have "better sales than a niche market product". "We've been doing well with diesel sales in past five to 10 years," she says.

"The 3008 has had good success for us so far so the introduction of diesel-hybrid will only strengthen the interest. Just look at the popularity of the Camry and Prius hybrids and this is promising much better economy and emissions results."

She says the HYbrid4 will probably come in one spec close to or matching the top-spec 3008 XTE. "There would be a premium price over the XTE ($39,990), but it will be minimal," Tipping says.

"One of our big things is keeping prices in line with the CPI and with the reduction in exchange rates we've been able to drop our prices recently, so we don't want to make it a huge step up." The HYbrid4 will feature new-generation high-voltage stop-start technology.

Tipping says the new technology will avoid the problem of shuddering which occurs when diesel engines start and stop. "There has been work to get rid of that," she says.

"The electric motor has dissipated that shudder in combination with the Aisin AT6 (manual six-speed electronic sequential) gearbox which is on some 308 and 3008 models." The HYbrid4 will feature a control selector on the centre console so drivers can choose between four operating modes.

Auto mode allows the system to switch between the HDi diesel engine and electric motor. ZEV mode (Zero Emission Vehicle) uses the electric motor for short periods when the battery is fully charged with the diesel cutting in only under hard and sustained acceleration.

Four-wheel drive mode (4WD) operates both powertrains and Sport mode uses both powertrains and combines quicker gear changes and higher engine speeds. The nickel-metal hydride batteries are under the boot floor, near the electric motor.

To cope with the added weight in the rear, the multi-arm suspension houses the electric motor and reduction gearbox. Despite the battery and motor in the rear, Peugeot claims load capacity under the parcel shelf of 420 litres and 66 litres under a flat boot floor.

The HYbrid4 is expected to come with a range of high-tech gear such as jet-fighter-style head-up display on the windscreen, a distance alert system that helps the driver keep a safe distance from the vehicle in front, a parallel park system that evaluates the size of a parking space, an electric handbrake with hill assistance and a satellite navigation system that includes a juke-box, hard disc drive, USB connector, DVD player and Bluetooth.

The 3008 HYbrid4 will be produced in Sochaux and Mulhouse, France.