PEUGEOT has revealed the smallest car dealership in the world - in a London phone box.

The iconic red K6-series phone box, which opens for business in Russell Square from September 12, has been converted into a fully connected online showroom using the company's Order Online e-commerce system.

Customers will be able to gain access to the diminutive dealership by getting a special code from the Peugeot website and once inside, they will find a tablet device connected to the e-commerce portal.

From there they can browse, configure, finance and ultimately order a new car.

Touted as the world's smallest at 0.8 square metres, the dealership - dubbed Peugeot Russell Square- will be open between 7am and midnight every day until the end of September.

Peugeot launched its Order Online service earlier this year and the e-commerce operation was the first by a major car brand that allows customers to complete the entire process of buying a new car from start to finish.

The first order was placed on the website within 12 hours of the system being launched. Since then, it has hosted nearly a million users who - during 1.5 million sessions - have completed more than 134,000 vehicle configurations and received more than 35,000 part exchange valuations.

Thursday afternoons are the most popular time for ordering a car, according to the data provided by the site, while Peugeot's 208 supermini is the car most ordered, accounting for two in every five cars bought using the system.

The e-commerce system allows customers to start the process online and then visit a regular-sized dealership for a test drive, still giving them access to ‘real' cars. After that, they can log back into the portal from anywhere and find their vehicle specification still stored.