CUSTOMISATION seems to be the name of the game with smaller cars these days.

Funky new shapes, complemented with funky 'go faster' stripes, decals, customised trim and other little goodies to give an individual look.

City cars are also growing in importance for most car makers as people look for better economy as well as a modest asking price.

Without doubt they are making great strides in terms of quality and practicality.

Take the new 108. Peugeot's baby is a quantum leap up from the 107 with an attractive profile in either three or five door style, better practicality and its excellent three cylinder Puretech engine which delivers excellent pulling power and economy with either the one-litre 68ps version or the more powerful 82ps 1.2-litre.

The 1.2-litre three-cylinder driven here delivers a claimed 65.7mpg with CO2 emissions of just 99g/km making it cheap to run, but it hits 60mph from a standing start in just 11 seconds.

It is very respectable performance with the distinctive rasp of the three pot engine evident under acceleration. It also produces almost diesel like torque, so it pulls away well even on low revs.

The car shares characteristics with the Citroen C1 and Toyota Aygo, but, in common with the latest crop of Peugeots, also shares the common face of the car and the signature ‘floating' grille.

It looks classy both inside and out, even with the graphics kit emblazoned across the bodywork and interior.

This particular model featured a purple and silver combo with houndstooth patterning and is one of range of choices to give that added bit of individuality.

With a starting price of £8,345, it is not going to be jam packed with equipment, but even the entry level Access gets electric front windows, stability control, power steering and RDS radio.

Equipment becomes more lavish is you move up the levels and the tested model had a raft of other equipment including rear parking camera which sits within a colour touchscreen which also operates the infotainment and Bluetooth connectivity for phone or music system, air conditioning, and electric door mirrors.

You would never describe the interior as Spartan, but neither is it anywhere near plush. Painted surfaces rather than soft touch plastics are the order of the day, but it feels anything but cheap and nasty.

The seats are comfortable and adjustable and the cabin has a roomy feel for such a small car. It feels a lot more sturdy and robust inside than its predecessor with instrumentation handily placed. There is one large dial sitting behind a neat steering wheel.

The boot is big enough for about half a dozen shopping bags, but fold the rear seats and the 780 litres offers decent stowage space.

On the road the car pulls well through all five gears and is a comfortable enough ride for all occupants thanks to a new suspension set up. This also helps the handling feels taut and the steering precise. Not something you used say about city cars.

The 108 is not the quietest on motorway, where wind noise is evident, but the 1.2 engine is powerful enough to keep up and overtake with comfort.

Its real home of course is the urban environment and its dinky size and light steering means it can zip around city streets and squeeze comfortably in tight parking spaces.