Peugeot's new local management has responded to slow sales by slashing the price of its 208 hatch and 2008 SUV. 

The French brand has reduced the cost of its small offerings by as much as five per cent. 

Sales of Peugeot's pint-sized 208 hatch have plummeted this year with only 197 units registered, a decline of 57.7 per cent compared to the same time last year. 

The new point of entry into the 208 range is the base Active model which now costs $22,990 before on-road costs, which represents a slight reduction of $300. But it is still similarly priced compared to range-topping versions of the Mazda2 and Toyota Yaris. 

However, the two high-specification 208 models receive a much bigger discount with the Allure and GT-Line now costing $24,990 and $26,990 respectively, a reduction of $1300.  

The 208 range is powered by a 1.2-litre three-cylinder turbo petrol unit that produces 81kW and 205Nm and is mated to a six-speed automatic transmission. 

Peugeot's 208 GTi remains priced at $29,990. 

Sales of the front-wheel drive 2008 baby SUV remain steady at 249 for the year, a slight rise of 4.2 per cent compared to 2016. However, it is still outsold by its mainstream rivals from Mazda, Honda and Mitsubishi. 

Pricing now kicks off at $25,490 for the base Active, which is now $1000 cheaper than before. The mid-spec Allure is also $1000 cheaper at $29,990 and the range-topping GT-Line is priced from $31,500 which is $1490 cheaper than before.  

All models are powered by the same 81kW/205Nm three-cylinder from the 208 and are equipped with a six-speed auto. 

The new pricing means it undercuts fresh two-wheel drive competitors like the Toyota C-HR which starts at $26,990 when paired with a manual transmission. 

Peugeot has also shaved several hundred dollars off the price of metallic paint. 

2017 Peugeot 208 and 2008  prices 

208 Active - $22,190 (-$300) 

208 Allure - $24,990 (-$1300) 

208 GT-Line - $26,990 (-$1300)  

208 GTi - $29,990 

2008 Active - $25,490 (-$1000) 

2008 Allure - $29,990 (-$1000) 

2008 GT-Line - $31,500 (-$1490)

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