Peugeot’s all-new 208 supermini — spied here in summer testing for the first time — will be smaller and lighter than the 207 it replaces when it is launched next year.

See spy pics of the new Peugeot 208

Peugeot insiders say the 208’s smaller exterior dimensions will not impact on interior space and it could even grow in size inside. Up to 100kg could be shed compared with the current heavyweight 207.

Read our first drive review of the Peugeot 207

The 208’s styling will be influenced by the firm’s SR1 sports car concept. The new car will ditch the 207’s oversize nose and grille in favour of the SR1’s sleeker, more elegant look. Indeed, the spy shots reveal a car with a lower nose and more elegant proportions despite the disguise.

Interior quality will also be greatly improved, with the focus on simple style and high-quality materials.

Engine development has centred on downsized turbocharged powerplants, with the star being a near-200bhp 1.6 unit powering a GTI model that Peugeot hopes will reclaim iconic status for the badge. A warmer — and cheaper to insure — GT version is also planned to appeal to younger drivers.

See all the latest Peugeot reviews, news and video