Peugeot is launching a sporty version of the 206, the XSi with a new 1.6-litre engine.

The 110bhp 16v powerplant accelerates the car from 0-62mph in 9.5 seconds with a top speed of 123mph.

The new engine also improves fuel consumption and reduces CO2 emissions compared to the outgoing 1.6 XS. The combined mpg of the new car is 41.5 and CO2 g/km is 161.

The XSi gets the GTI's clear polycarbonate headlight lenses plus new 15 inch Sirocco alloy wheels and front sports wings.

Inside there's the new 'Merlin' trim in black/grey or black/red and a leather trimmed steering wheel and gear lever. Full leather trim is a cost option.

The XSi is priced at £11,695 OTR and includes a three year warranty.