Peugeot 308 vs Kia Picanto

What's the difference?

The 308 GT Sport plug-in hybrid is a beautifully designed small hatch that is comfortable, enjoyable and easy to drive. The electric motor gives this hatch good acceleration and the equally impressive handling makes for a fun car to drive too. There's good storage, a decent boot and room for even tall people like me in those back seats.

There are two clear drawbacks, however: the price is steep compared to the petrol version; and you'll need to plug the vehicle into a power supply each night if you drive the car daily and want to achieve the 2.4L/100km fuel economy we did in this test.

Last, but probably the most important thing you'll read is that Peugeot will bring fully electric cars to Australia from the second half of 2023, from SUVs to (hopefully) the battery electric version of this very 308 hatch.

If it was my money, I'd hold on - you're going to have your next car for quite a long time so it's worth waiting for the fully electric versions.

Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.

Australians are moving into ever-larger vehicles when really we should be embracing the small car now more than ever. It's great Kia is still here, with its Picanto showing what can be offered in such a compact form-factor.

While it's not as affordable as it once was, it looks like it won't be long before Kia is the last torchbearer of sub-$20k starter cars. Even so, this is a great choice for buyers on strict budgets.

There hasn't been a Peugeot in the last five years that wasn't stunning. There's the high quality feel in their build, and premium yet unique look - like a new Volvo but with more flair. And the 308 hatch and this hybrid version has all of that.

From the sinister looking LED tail-lights to the wide mesh grille, you really get the feeling that Peugeot is hitting its design stride.

This 308 GT Sport plug-in hybrid looks identical to the petrol version with its low, wide stance, and big dark alloy wheels that fill up its arches.

The cabin is sporty, lavish and minimalist with quilted leather upholstery seats, the digital driver display and media screen, and avant garde small angular steering wheel.

You wouldn't know it in Australia, where our collective tastes are orienting toward larger and larger vehicles, but city cars are experiencing something of a golden age overseas.

Cars like the Nissan Sakura, Honda N One, and Hyundai Casper join a long list of others which are design leaders in the city-car segment, and this is why the Picanto needs to look sharper than ever to compete.

Particularly in the GT-Line form we tested for this review, the 2024 car has adopted a dramatic facelift which complies to Kia's incoming and much more science-fiction look, complete with an extremely angular design and frowny LED light fittings.

Around the rear, there's a reworked set of tail-lights with a contemporary strip which almost reaches the whole way across the boot lid, and the new alloy wheels round out the whole aesthetic.

Given this, it's a little disappointing to see how few elements have changed on the interior. From the inside, this Picanto feels basically the same as the pre-update version.

I like the D-shaped steering wheel the GT now gets, and the multimedia screen is great for such a small and affordable car, but all the other switchgear, including the steering wheel is from previous-generation Kia products, and not the shiny new design-led stuff which appears in cars like the Sportage, Sorento, or Niro.

Also, while it's feature-laden all things considered, the interior plastics are mainly the harsh, hollow, scratchy kind. The new digital instrument cluster isn't one big screen, instead it's constructed of a few basic sectors which aren't customisable outside of the background colour. At least the central portion shows some useful information.

Peugeot's 308 is a small hatch, think Toyota Corolla, only beautiful and more spacious.

So, the 308 can carry five people with just enough head and legroom for a semi-giant like me (I'm 191cm) to sit behind his driving position.

There's good cabin storage with large door pockets, a long and deep storage box under the centre armrest up front along with two cupholders up there, too.

The boot has a cargo capacity of 361 litres, which isn't bad for this class.

To power devices there's a wireless phone charger under the dash, and USB ports for front and rear passengers.

A quirky Peugeot design feature is the low-placed angular steering wheel. I found had to squeeze my knees past to sit in the driver's seat. I'm not sure what size human was used as the test case for this but it wasn't somebody with stilts like mine, I can tell you that.

Feeling a little old or not, the Picanto has a clever interior which makes the most of its limited dimensions.

There are huge bottle holders in the front doors, a further two with little flip-out sectors which sit below the air-con controls. These holders can be folded away to turn this space into a tray for the storage of large objects. There's even a centre armrest console box, but it's tiny.

On the topic of air-conditioning controls, these are, refreshingly, physical dials, which are increasingly going missing as manufacturers move such functions to touchscreens. The Picanto keeps things manual though, even including a volume and tuning knob for the touchscreen, with physical shortcut buttons adorning the bottom section of the frame.

Physical controls is something Hyundai Group has committed to, and it's not until you use a vehicle without them you realise how essential they can be.

Despite its tiny footprint, there's also plenty of room in the cabin for an adult my size (I'm 182cm tall). I felt as though there was massive airspace between my head and the roof, as the Picanto's seats let you sit nice and low to the ground, and while it's limited in its width, it feels like I had enough room and adjustability for my legs.

Only one area brought me discomfort and it was the elbow-rest in the door. Sounds silly, but while the GT-Line has a little synthetic leather strip here, for some reason it has no padding, so it's seemingly for aesthetic purposes only and is still an uncomfortable place to rest your elbow on longer journeys.

It sounds unlikely, but I fit behind my own driving position in the back seat, with my knees almost up against the back of the front seat. Thankfully, the seat backings are softly-clad so even if you were slightly taller than me it might be ok.

Again, headroom is sufficient, and the seats are reasonably comfortable in the outer two positions. There are no amenities in the back seat. Rear passengers don't get air vents, door pockets, or a drop-down armrest in the centre position. There is only a small pocket on the back of the passenger seat. Can't say it would be the best space for longer journeys, but it fits adults for short city trips.

The boot measures 255 litres. It's small enough it may rule the Picanto out for some family buyers who need to wrestle with a pram or some such. The boot is large enough to fit either the largest CarsGuide luggage case on its own, or the two smaller ones, but absolutely not all three. It may surprise you to learn there is enough room under the floor for a space-saver spare wheel.

Every dollar counts here, which is why it is disappointing to see the Picanto continue to claw up the price-scale for this update, but it's not in a major way, and it's still one of few options left in this price-bracket at all.

In fact, it is the only option aside from the MG3 Core, which can be had in automatic form at $19,990 drive-away and even then this car is set to be replaced later this year with a bigger and more expensive new-generation, so the Picanto may well be the last bastion of sub-$20k affordability in Australia.

Now keep in mind, these are before-on-road costs, so it's likely if you can have any Picanto under $20k by the time you get it on the road, it's probably going to be the base model Sport Manual, which starts from $17,890.

From there, you can add an automatic gearbox, pushing it to $19,490, or you can upgrade to the GT-Line which is the car we have for this review, which costs from $19,690 for the manual as-tested, or $21,290 for the automatic.

A small spread of relatively affordable prices in this market then, but what's in the box? As it happens, more than you might expect.

Standard stuff in 2024 has increased on the base Sport grade to include 14-inch alloy wheels (in place of the previous steel wheels with hubcaps), as well as a leatherbound steering wheel and shifter (up from the previous plastic-clad ones), and a 4.2-inch digital instrument cluster replaces the analogue dials.

Meanwhile, the GT-Line scores a D-shaped steering wheel and new 16-inch alloy wheel designs, and the updated and more aggressive face is highlighted by LED light clusters. In addition, the GT-Line scores USB-C outlets on the inside, synthetic leather seat trim, and both grades maintain the 8.0-inch multimedia touchscreen with wireless Apple CarPlay connectivity.

Feels like a lot more car than it appears from the inside, especially since it comes with most of today's expected active safety tech, too, which its main rivals, the MG3 and Suzuki Ignis, have never been able to claim.

The 308 GT Sport plug-in hybrid has a 1.6-litre turbo-petrol engine making 132kW and 250Nm combined with an electric motor at the front wheels making 81kW and 320Nm.

The combined output of the engine and motor working together is 165kW and 360Nm, and sending that grunt to the front wheels only is an eight-speed automatic transmission.

Acceleration is good. We're talking 0-100km/h in 7.4 seconds which is more than two seconds quicker than the petrol-only variant.

This is another area where the Picanto is feeling in need of a little innovation. It has the same very dated 1.2-litre four-cylinder petrol engine as the previous car, producing a sufficient but not exciting 62kW/122Nm.

It drives the front wheels via an equally old four-speed automatic transmission, or as tested, a five-speed manual transmission.

It's better with the manual if you can drive one, and a bit of a win for first time or young buyers who will still have the option to learn to drive one, so points there.

This is what it's all about right? Well, Peugeot says that after a combination of open and urban roads the 308 GT Sport plug-in hybrid will use 1.3L/100km.

At the launch I did a 34km test loop through Sydney's Northern Beaches with a good mix of morning traffic and hilly terrain. At the end of my journey the trip computer reported an average fuel consumption of 2.4L/100km.

I drove the entire loop in Hybrid mode, but there is a Sport mode, a Battery Save mode and EV mode.

If you were to drive in EV mode Peugeot says the electric driving range with a full battery is 60km.

At the start of my drive the battery was about three-quarters charged with the gauges displaying 38km of range.

A mileage of 2.4L/100km is still excellent fuel economy and from experience I can tell you a petrol-only variant would be up around the 8.0 or 9.0L/100km mark for the same trip.

There is a catch, and that is you'll need to plug in your hybrid 308 daily to charge the battery if you plan to achieve the fuel economy I did.

Charging will be slow, however, because Peugeot has fitted this hybrid with a small 3.7kW on-board charger. So, even using a fast charger you'll be looking at more than four hours to fully charge the 12.4kWh lithium-ion battery.

This charging time and small electric driving range in return could be a deal breaker for some and it's the reason why I've given the 308 GT Sport plug-in hybrid a lower mark. If you aren't always charging this car your fuel usage will rocket. New buyers unaware of this could end up using more petrol than ever.

A fully electric vehicle may be a better solution for city dwellers.

An older engine and transmission combination makes for a less than impressive fuel consumption figure in today's market, but then the Picanto is a very light car, so it has lower fuel consumption than most of its contemporaries regardless.

The official fuel consumption on the combined-cycle test of the five-speed manual we tested is 5.4L/100km, and in our week of what I would consider fairly combined usage our GT-Line drank 6.0L/100km. Not great when you consider a much larger hybrid Corolla can use less fuel, but pretty close to the claim nonetheless.

The Picanto has a 35-litre fuel tank – enabling a theoretical driving range of 648km – and happily drinks base-grade 91RON unleaded fuel.

Once you've become accustomed to the strange, low steering wheel with its angular design the 308 GT Sport plug-in hybrid is superb to drive. The suspension is composed and comfortable, the handling is excellent, the steering is light and with the combination of both the electric motor and petrol engine, acceleration is good.

For those of you who haven't driven a plug-in hybrid before I think you'll like the quiet electric power at low speeds and the feeling of ‘instant' acceleration the electric motor adds, but compared to driving a regular petrol car the experience is much the same, just less noisy and smoother.

You've got low power, a pretty low-tech engine and transmission, but this little Kia is still great fun to drive.

For a start, you can have it as a manual that lets you wring the best out of the little engine, which is easygoing but lacklustre with the four-speed auto.

To be clear, it's not a great manual - usually when you get a brand new manual in 2024 it's one of those fancy performance ones with nice damping and notchy gates, but as simple as it is, it also gives the car a raw mechanical nature which keeps it engaging to drive. There are real consequences for choosing the wrong gear and it takes a touch of skill to get used to, a lost art of the all-encompassing drive which is a welcome change of pace compared to a lot of cars today.

The Picanto also has keen steering helping the organic feel, and it has a firm ride, too, which makes it surprisingly sporty in the corners, but it's lightweight nature and firm suspension gave it a crashy and bouncy feel on some of the inconsistent Sydney streets I exposed it to.

It's also a bit noisy in the cabin, both in terms of engine noise (you have to rev the thing to get it going) and tyre roar on anything but the finest tarmac. This issue increases with your speed, and reminds you of its city-car intention when you're on the freeway.

Still, the city is where it's best suited to, and it's a joy to easily dart down alleyways which take a degree of caution in the usual mid-size SUVs you see around the place, and the fact you can park it anywhere can be a real blessing.

The visibility is great, too, which means multi-lane situations aren't a nightmare, and the full suite of manual adjustment for the stereo and air conditioning are super easy to use when you're on the go (who has time to adjust a touchscreen when you have a manual transmission to worry about?)

In conclusion then, the Picanto isn't to be underestimated. This is a spritely fun little thing which makes the most of its limited hardware, but it truly is best suited for the confines of a city, and gets less impressive as you get it out on the open road.

The other great thing about this Picanto is its surprisingly thorough suite of active safety items. It gets auto emergency braking, lane-keep assist and lane departure warning, as well as blind-spot monitoring and rear cross-traffic alert.

Again, its limited array of rivals like the MG3 and Suzuki Ignis can't compare.

The Picanto has an array of six airbags (dual front, side, and curtain), although it is not currently rated by ANCAP.

The 308 GT Sport plug-in hybrid is covered by Peugeot's five-year/unlimited-kilometre warranty.

Peugeot will cover the hybrid battery with an eight-year/160,000km warranty.

Servicing is recommended at 15,000km or 12 month intervals and it can be expensive. Peugeot says the first service will be $425, then second is $771, the next is $425, then at 60,000km the costs will be $900, then $439 for the following.

Kia's stand-out seven-year/unlimited-kilometre warranty isn't as stand-out as it once was, but is still the standard to beat for this segment, and is especially impressive considering the up-front cost of the Picanto.

You also get seven years of roadside assist included and a seven-year capped-price servicing program.

Over those seven years the price averages out to $438 annually, which is not as cheap as it could be, especially considering many Toyotas cost about $250 a year to keep on the road for their (shorter) warranty period.

The Picanto needs to visit a workshop once every 12 months or 15,000km, whichever occurs first.