Peugeot plans to be the first manufacturer to offer a small family car with a diesel-electric hybrid engine system. It will be based on a version of the new 308, which is due to go on sale in the autumn. However, the hybrid model will not be on sale for about two years.

Peugeot says its diesel hybrid will have fuel economy of more than 4 litres/100km (70mpg) and have the lowest carbon dioxide emissions of any car other than a pure electric.

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