What's the difference?
Peugeot has dropped its traditional petrol and PHEV options for a new mild-hybrid system in the next-generation 3008.
We’re testing the flagship GT Premium Hybrid, which brings fresh styling, upgraded tech and a premium cabin into one of the most competitive SUV segments, but is it enough to stand out?
Honda built its four-wheeled automotive empire on the back of small cars, flying in the face of 1970s convention that bigger was better. As the ubiquitous Civic grew larger and larger, a niche for a smaller car appeared, and that niche was subsequently filled by the City in sedan guise, and the Jazz hatch that sits alongside it.
The buying public, however, is simply not as interested as it once was in small hatches and sedans, and Honda, along with other importers, is feeling the pinch when it comes to slumping sales for its smaller models.
But are we all missing out on something here? After all, the Thai-built City is priced from a rock-bottom $15,990 in base manual form – which is not a lot of money for a Honda.
We’re trying the range-topping, $21,590 VTi-L to see what we may have been missing.
The new Peugeot 3008 GT Premium Hybrid might not be the most spacious SUV for passengers, but it makes up for it with ample boot space and a standout design. It’s fresh-faced, interesting and packed with comfort features that elevate the everyday driving experience.
Is it expensive? Absolutely. But it also delivers a genuinely premium cabin that many rivals can’t match, along with refined on-road manners and efficiency that make it a pleasure to drive.
It doesn’t hit every note perfectly but there’s definitely a melody here worth listening to.
Small sedan sales are on the wane, and as a result, the cars that remain in the market often aren’t the best in a brand’s lineup.
This is the case with the Honda City. While it’s got plenty of space for passengers and it’s economical, the performance of the drivetrain in terms of composure leaves a lot to be desired.
The underdone steering, too, makes the car uncomfortable for passengers more often than not, while the buggy, hard-to-use multimedia system is unforgivable in an almost-$22,000 car.
Put it this way… the larger, newer, more refined base model Honda Civic is tantalisingly close in price to the top-spec City, and we know which side of the dealership we’d be walking towards.
The third-generation Peugeot 3008 boasts a striking silhouette, with coupe-like lines at the rear and well-proportioned overall dimensions that give it a confident, refined stance.
Signature Peugeot elements like the claw-inspired LED headlights and tail-lights lend it a distinctive, modern edge, which elevates its presence in a crowded SUV segment.
That said, the extensive use of black plastic cladding around the lower body detracts from the otherwise premium exterior and feels out of place.
Step inside and the cabin is easily one of the most captivating interiors I've been in recently. There's real design flair here: a multi-level centre console, sculpted ambient lighting panels that highlight the angular dashboard, and a rich, eclectic mix of materials. From quilted Nappa leather seats to textured grey knit fabric and brushed aluminium accents, it’s a refreshingly bold and beautifully executed space.
Add the panoramic sunroof and long equipment list, it's a cabin that you'll like to spend a lot of time in.
The City does a good job of disguising the fact that it’s a micro-sized sedan; at first glance, the revised front bar and grille that’s meant to mimic the one on the new Civic does such a good job that some people will need to look at the bootlid badge to find out it’s not a Civic.
A high waistline and a solid yet stylish sweep over the roof keep the City from looking overly twee, and even though the 16-inch wheels look a bit narrow, the overall impression is one of a larger car.
The interior, too, is spacious and airy, while the controls and steering wheel give the City an upmarket feel. There’s a little too much grey plastic inside, and hard plastics aren’t difficult to spot, but the City presents well, on the whole.
The best part of the cabin is easily up front. There's generous space, and the seats are comfortable, even before you engage any of their functions. Longer trips have been a dream. I particularly enjoyed the massage settings, though the session durations felt a bit inconsistent.
Storage in the front is cleverly designed, with plenty of options: a sunglasses holder, a large glovebox, a phone shelf, a deep centre console and ample drink holders. It’s easy to keep the space tidy and organised.
Charging options are solid, with two USB-C ports, a 12-volt socket and a wireless charging pad.
The updated multimedia system has a screen that is wider than it's tall, making the icons small and easy to miss while on the go. I did tap the wrong one a few times!
That said, I appreciated the customisable quick-access and instrument panels, and connecting to the wireless Apple CarPlay was seamless. The touchscreen can be a little laggy, but overall the system is functional and intuitive once you're used to it.
Owing to its relatively short 4542mm length, rear legroom is tight, and the bench isn’t wide enough to comfortably seat three adults over long distances. This just makes it feel cramped for a mid-size SUV and it's something my eight-year old noticed straight away.
The seats are well-padded, though, and rear amenities are strong with directional air vents, heated outboard seats, two USB-C ports, a 12-volt socket and the usual cupholders and map pockets.
Boot space is generous at 520L with a flat load floor. The 48-volt battery means there's no spare tyre, but the powered tailgate with kick-function was a lifesaver during errand runs this week. For more flexibility, the rear row folds in a 40/20/40 split.
Up front, the City is a great fit even for taller drivers, and its height-adjustable seat also means that the, err, less vertically inclined pilot can find a comfortable position behind the tilt-and-reach adjustable wheel.
A regular gear shifter and manual handbrake means the two cupholders are squashed under the centre console, but there are bottle holders in all four doors, as well as two more cupholders in the rear centre armrest in the VTi-L.
The VTi-L also gains two extra 12-volt accessory power points in the rear to complement the USB and a third 12V point up front, while the keyless entry system is not something you’d usually find on a car at this price point.
Sadly, the City’s multimedia system lets the side down - big time. Try as we might, we couldn’t connect a phone to our tester, no matter what we did, and it’s just utterly unintuitive to use in most situations.
It’s a bit of a rude shock, actually; most manufacturers have media systems sorted, but there’s simply not a even a half-decent one in any Honda that’s currently on sale. And there's no Apple CarPlay or Android Auto, though you can find those mirroring systems in the larger Civic.
Rear seating has adequate headroom – just – for taller teens, and there isn’t a lot of compromise required from front seaters to comfortably accommodate four people. Five? That’s getting crowded, but it can be done.
Two ISOFIX baby seat fixtures are present, along with three top-tether mounts. Boot space measures 536 litres - which is actually 12 litres bigger than that of the new Camry - while both rear seats fold flat(ish) to increase load capacity further.
A good point; the seats can be unlatched via boot-mounted buttons. A bad point; you still have to reach in and push the seats down by hand. A space saver spare nestles under the boot floor, as well.
The new 3008 has a streamlined line-up of only two grades, at least for now, and we’re in the flagship GT Premium Hybrid for this review.
The third-generation 3008 has a new mild-hybrid powertrain, which pairs a turbocharged petrol three-cylinder engine with a small electric motor and a 48-volt battery. A fully electric version exists overseas but is yet to be confirmed for Australia.
Our test model competes with popular mid-size SUV rivals like the Mazda CX-5 Akera, which starts at $55,150 before on-road costs, and the Toyota RAV4 Cruiser 2WD, which sits at $51,410.
With its $64,990 price tag, the new 3008 GT Premium Hybrid is the most expensive option, which might only appeal to fans of the brand.
However, the GT Premium is very well-specified with massaging and heating functions for the electric front seats, a panoramic sunroof, a 10-speaker Focal sound system and a 3D sat nav with connected services, where you can get information like local car park pricing, as well as over-the-air updates.
Other premium features include ventilated front seats and heated rear outboard seats, which are new for this model.
But the biggest change inside is the new 21-inch display, which houses the updated multimedia system and digital instrument cluster.
There are other new features like wireless Apple CarPlay and Android Auto, and an upgraded panel for your quick access menu widgets (up to 10 widgets can be customised).
Other features include a handsfree powered tailgate with kick functionality, keyless entry and start, four USB-C ports, a wireless charging pad, a tyre repair kit, a panoramic sunroof and surrounding ambient lighting.
The top shelf VTi-L is the best of a two-model lineup, and costs $21,590 plus on-road costs. It comes with an 88kW 1.5-litre four-cylinder petrol engine and a continuously variable transmission driving the front wheels, as well as LED daytime lamps, a part-leather interior, push-button start and smart key, climate control air conditioning, 16-inch alloys and a 7.0-inch touchscreen multimedia system with sat nav and Bluetooth phone and audio streaming.
It also has a leather-bound steering wheel and gear shifter, and map pockets on both seat backs.
It does miss out on a lot of other stuff, though, including Apple CarPlay and Android Auto capability, automatic lights (remember when a car last beeped at you to turn off the lights? Me neither...) and automatic wipers, and it also misses out on driver aids like auto emergency braking (AEB).
It starts to look a bit dear when you look at similarly priced cars - even from the next size sector up - that do offer inclusions like AEB and automatic headlights, though the small sedan is a bit of a rarity in the Aussie market now.
Its only like-for-like rivals in the space are the Mazda2 sedan and the Hyundai Accent sedan. Other potential competitors like the Ford Fiesta sedan and, more recently, the Toyota Yaris sedan have been deleted from local line-ups after years of declining sales, while the subsequent rise of the compact SUV will continue to have an impact on the so-called 'light car' market.
All grades of the 3008 are powered by the same mild-hybrid setup, featuring a 1.2-litre three-cylinder turbo-petrol engine that's paired with a small electric motor and a 48-volt battery. Power is sent through a six-speed dual-clutch transmission, with the system delivering combined outputs of 100kW of power and 230Nm of torque.
Performance is modest, with a 0-100km/h sprint time taking 10.2 seconds. It’s perfectly adequate for everyday driving around town and in traffic, but the lack of urgency becomes more noticeable when overtaking at highway speeds. Still, the hybrid system offers smoother low-speed acceleration and improved efficiency over the outgoing petrol-only model.
The i-VTEC four-cylinder 1.5-litre single cam engine is naturally aspirated, and it makes its 88kW at a high 6600rpm, while its modest 145Nm of torque peaks at 4600rpm.
It means the CVT gearbox needs to work pretty hard to get the best from the engine, which has been superseded by a twin-cam version in other markets.
The new mild-hybrid powertrain brings a solid improvement to efficiency, with an official combined fuel consumption of 4.9L/100km. Paired with a 55-litre fuel tank, that delivers a theoretical driving range of up to 1122km, which is an impressive figure for a mid-size SUV.
Over the past week, I’ve done a mix of longer highway drives, urban errands and the usual big grocery hauls. My real-world average came in at 6.1L/100km, which is still a strong result for this segment.
The system also features regenerative braking, which while not customisable, is noticeable in everyday driving. It kicks in strongly enough to give the sensation of heavy braking at times, particularly in city traffic and it reminds you that it's working behind the scenes to recover energy.
The underdone performance does offer a benefit at the petrol pump, with the City returning a claimed 5.9 litres per 100km on the combined fuel economy cycle.
A 320km test loop netted us a dash-indicated figure of 6.3 litres per 100km, which is impressively close.
The 40-litre fuel tank is happy to accept standard unleaded petrol, too.
The 3008 has been genuinely enjoyable to drive. It’s easy to handle, with responsive steering and a stable, confident feel at higher speeds. The transmission generally keeps the powertrain in the right gear, only occasionally over-revving during open-road driving.
Power delivery is prompt enough for stop-start traffic and quick city lane changes. That said, there's a noticeable dip in performance when overtaking on the highway and it’s a clear reminder that this isn’t a high-output powertrain.
Visibility is generally good, though the narrow rear window can limit your view, especially when passengers or a child seat are in the back. Still, the pillars didn’t obstruct my view from the driver’s seat.
The suspension is on the firmer side, so you will feel the larger bumps, but it strikes a decent balance for everyday driving.
There’s a bit of body roll when cornering, which prevents it from feeling as sporty as its coupe-inspired design might suggest.
Parking is a breeze thanks to the clear 360-degree camera system, ample sensors and a tight 10.64m turning circle. My only gripe is that the rear camera points slightly downward, which can make the view feel narrower than expected.
Weighing just 1100kg, you’d expect the 1.5-litre powered City to have a bit of get up and go… but unfortunately it’s already gotten up and left by the time you drive off.
The 1.5-litre naturally aspirated engine is a carryover unit from the previous generation, and it feels like it, too. It’s also teamed with a CVT gearbox that isn’t a patch on more up-to-date trannies from the likes of Subaru and Toyota.
On any sort of incline, the CVT ups the revs of the engine to a point between bloody annoying and mildly painful, too. The VTi can be ordered with a manual gearbox, which has to be better than the CVT in this example.
The underdamped suspension tune is adequate for light duties around town, but the electric steering feel very odd underhand, especially at the very beginning of a turn.
There’s a big initial motion at the front wheels when you start to turn which then quickly tapers off, meaning that you have to be ultra precise with your steering to prevent the City from lurching into the corner and falling over its soft suspension.
On light throttle, with no hills and few corners, though, the City is just fine…
At the time of writing, the 3008 is untested and unrated by ANCAP, which may be a consideration for some buyers. It also features just six airbags, missing a front centre airbag — a growing standard in many newer rivals.
On the plus side, Peugeot has added several useful driver assistance features, including forward collision warning, long-range blind-spot monitoring and lane departure warning.
Other standard features include autonomous emergency braking, lane-keeping aid, lane-following assist, driver attention alert and monitoring, traffic sign recognition, rear cross-traffic alert and adaptive cruise control with stop and go functionality.
There are also child locks on the rear doors, an intelligent seatbelt reminder, front passenger detection and tyre pressure monitoring. Most of these systems operate quietly in the background and don’t feel overly intrusive, which I always appreciate.
However, I did encounter a concern with the autonomous emergency braking system. During a close call when another driver blew through a roundabout in front of me, the system didn’t alert or react — no sounds, no warnings. It was a surprising omission, especially in a moment where you’d expect the tech to step in.
The rear row has ISOFIX child seat mounts and three top-tether anchor points but two seats will fit best.
As mentioned, the City misses out on AEB and other driver aids, but does offer emergency brake assist and emergency flashing brake lights, as well as hill-start assist.
Full-length curtain airbags are offered along with dual front and front side 'bags, and there's a reversing camera. The City holds a maximum five-star ANCAP rating, which it has had since it was tested back in 2014.
The 3008 comes with a five-year/unlimited-kilometre warranty, which is okay but now feels a bit basic, especially when rivals like Nissan offer up to 10 years of coverage (under specific servicing conditions).
Peugeot also provides a five-year capped-price servicing plan, or you can opt to pre-purchase servicing for three, four or five years. The five-year pre-paid plan comes in at $1890, which works out to be more affordable than sticking with the capped-price option.
Servicing intervals are every 12 months or 25,000km, whichever comes first. That’s quite generous, particularly if you rack up a lot of kilometres annually.
Honda sells the City with a five-year, unlimited kilometre warranty, while a no-catch seven-year, unlimited kilometre warranty is occasionally offered with its cars, along with premium roadside assistance for the life of the longer warranty.
Both warranties are also transferable to the next owner, should you sell your car before the warranty expires.
A fixed-price servicing regime is in place for the City, too, starting at $259 and peaking at $297. But Honda asks for the City to be serviced every six months or 10,000km, which does add to the cost of running the car.