Volvo V40 vs Peugeot 308

What's the difference?

I’m going to miss this V40 like I do my old phone, and for many people this hatch really could really be close to perfect: excellent safety equipment, enjoyable to drive, cool prestige styling and some lo-fi buttons and dials that are far easier to use than swiping a screen. This is your last chance to own an old, new V40.

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.

The V40 has been around forever (well, since 2012) but somehow it still looks great – it’s the Nicole Kidman/Rob Lowe of cars.

The thing is Volvo’s new-generation vehicles now have a different look, which will be worn by the next V40, and that seriously dates the current car.

Sure, in 2016 this V40 was updated and given 'Thor’s Hammer' LED running lights like the new-gen cars, but it’s clear the V40 has the old look.

The question is: are you the type of person who would be annoyed if this time next year somebody in the latest ‘new-look’ V40 pulled up beside you at the lights. If yes, then stop reading now… we’ll just wait a moment for you to leave.

Okay, it’s just us now. We don’t need those shallow people anyway, right? They don’t know what they’re missing out on – like an interior with lots of buttons. I’m serious the centre console actually has a numerical key pad for making phone calls. There are also lots of dials for the climate control and seat warmers and for the auto parking system.

All of these buttons will be replaced by a sexy, large touchscreen in the new V40, which will make the screen in the current one look like the slot in Ned Kelly’s helmet. Wait, don’t leave. See, I’ve road tested the new X60 and I missed just flinging a dial to make the cabin’s temperature cooler, instead I had to go into the screen’s menu, find the climate functions, and then slide my finger down a little digital ladder until I found 21 degrees. It’s a frustrating design and potentially distracting in that it takes your eyes off the road longer than twisting a dial does.

I’ll stop the rant. So, yes, the interior of the new V40 will look so sleek and minimalist, decluttered of its buttons and sporting a large vertical screen, but there are functional advantages to keeping it simple.

That said the current V40’s cabin is still special and elegant. The Inscription grade brings milled aluminium trim to the centre console and that leather steering wheel. Volvo owners would be aware of that solid, well-built feeling with a high-quality fit and finish.

What are the V40’s dimensions? Compared to the Audi A3 Sportback the V40 is 59mm longer at 4369mm end-to-end, 72mm wider at 1857mm across, and 5mm shorter in height at 1420mm.

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.

Umm, next question. Okay, the V40 is not very practical. Those small rear doors don’t open wide, making entry and exit potentially difficult for older or less limber folks.

Legroom in the back is limited – although at 191cm I can just sit behind my driving position and headroom is getting tight, too – but still there’s just enough room for me.

The V40’s cargo capacity is 335 litres and that’s smaller than the A3 Sportback’s boot space (380 litres) and the BMW 1 Series’s luggage capacity (360 litres). The aperture of the boot itself is also small.

There’s even a practicality issue with the driver’s doorway – that windscreen is so slanted that the A-pillars either side of it are hard to dodge for taller people when trying to get in, but especially when climbing out.

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.

The 308 GT Sport plug-in hybrid lists for $64,990 before on-road costs. The ‘GT Sport' part of the name is the grade and the hybrid only comes in this grade. In comparison the priciest petrol 308 hatch is the GT Premium for $48,990. The 308 GT Premium also comes in wagon form and that's $50,490. Alas the wagon doesn't come as a hybrid.

Is it good value? Nope. A charge of $16,000 over the cost of the GT Premium petrol version with almost identical standard features is pretty unreasonable. It's also not good value when you could buy a fully electric car about the same size such as a new Tesla Model 3 for $64,300, or a Polestar 2 for even less at $63,900.

However if your heart is set on a PHEV, the main competitor is another Euro hatch - the Cupra Leon VZe from $59,990.

The 308 GT Sport plug-in hybrid standard features include LED matrix headlights, 18-inch alloy wheels and a panoramic sunroof, while inside there are two 10-inch displays - one for the media system and one for the driver's gauges.

It also has black full-grain Nappa leather seats (heated and massaging for the driver and front passenger), a 10-speaker Focal stereo system, proximity unlocking, dual-zone climate control, sat nav, wireless phone charging, plus Apple CarPlay and Android Auto.

The V40 line-up has three petrol engines to pick from and the T4 sits right in the middle between the most powerful T5 and the least grunty T3. A 2.0-litre four-cylinder turbo-petrol engine the T4 makes 140kW/300Nm and delivers it through a smooth six-speed automatic.

That engine is up there with my favourite things about the V40 Inscription. The power figure isn’t huge but 300Nm of torque provides decent shove. A 0-100km/h time of 6.9 seconds isn’t at all slow.

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.

Volvo says the V40 should use 5.6L/100km of premium unleaded fuel over a combination of open and urban roads.

If you’re only going to stick to urban areas you’ll see higher usage – our trip computer was reporting an average of 14.9L/100km on a regular peak hour commute, but motorways drop the figure to about 8.0L/100km.

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.

That grunty 2.0-litre engine teamed with that smooth six-speed transmission goes a long way to making the V40 Inscription T4 an enjoyable car to drive.

Good handling and a fairly comfortable ride complete a prestige and easy-to-drive package that’s only really let down by heavy steering and slightly noisy suspension. That heavily sloped windscreen does present some visibility issues, but it’s not a deal breaker.

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.

The petrol variant of the Peugeot 308 achieved low scores when it came to protecting its front passengers in ANCAP's frontal off-set crash test and it was for mainly this reason that the vehicle scored four out of  the maximum five stars in its ANCAP and equivalent European safety rating.

That said, Peugeot Australia has added more safety technology to the 308 than the European version of this car, such as a more comprehensive autonomous emergency braking (AEB) system as standard.

Along with AEB that can also detect cyclists and pedestrians, other standard safety tech includes lane keeping assistance, blind spot warning and rear cross traffic alert.

For child seats there are three top tether anchor mounts across the second row and two ISOFIX points on the outside rear seats.

There are front and side airbags for the driver and co-pilot, while curtain airbags cover the first and second rows.

The V40 Inscription is covered by Volvo’s three-year/unlimited kilometre warranty. Volvo has two capped-price servicing programs – the $1600 Smartcare for three years and the $2950 Smartcare Plus for five years.

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.