Last year the 306 was Peugeot's best-selling fleet car accounting for 34,099 sales out of total Peugeot fleet registrations of 88,174. First details of the revised 306 range come at the same time as the new 406 estate goes on sale giving Peugeot a two-estate model line-up for the first time in five years.

Price and UK specification details of the new 306 line-up have yet to be announced but we would expect estate versions to command a near £800 premium over hatchback equivalents, similar to the premium paid for a Ford Mondeo estate over its saloon counterpart. A full line-up of petrol and diesel engines and trim levels will be available.

In terms of styling changes the new 306 headlights and 'face' reflect the modern Peugeot family first seen on the 406 saloon and more recently on the 106. Bigger bumpers add 35mm to the car's length taking the hatchback to 4.03 metres overall and body coloured bumper aprons with a deep front integral air intake complete the new design. Internally there are higher quality trim materials and resculpting of the door panels, centre console and switch gear.

Engine changes see the new 306 line-up adopt the 1.8-litre 112bhp and 2.0-litre 135bhp engines as used in the 406 range. The two 16v engines will replace the existing eight valve versions in the 306 range. Petrol 1.4, 1.6 and the 2.0 16v 167bhp engines complete the line-up along with 1.9-litre diesel and turbo diesel engines.

Specification will include driver's airbag, power steering and remote audio controls - all already featured on existing 306 models - but additional innovations first seen on the 406 saloon, such as automatic windscreen wipers and dual lens door mirrors, will also be introduced.