Peugeot has cut prices across its range after reductions on some models saw sales soar.

Cuts of between £500 on the 106 to £1,525 on a 406 have been announced, along with improved specification on several cars.

They follow an experiment earlier this year, where reductions on some models led to an increase in sales.

Offers such as one year’s free insurance on most 106 and 206 models will be continued. The 206 will get a CD player as standard, and the 406 and 607 will get satellite navigation as standard.

Managing director Tod Evans said:

“Peugeot has been promoting savings against list price on certain models since early summer, providing us with unprecedented sales success with over nine per cent of the UK market during this period.

“Our latest move to provide price reduction across our new car range adds clarity to the Peugeot offer for customers.

“Peugeot led the volume car market place with the introduction of three year’s warrant cover at the beginning of this year on all its models.

“We were recently voted ‘Manufacturer of the Year’ by Automotive Management magazine for the company that demonstrated the greatest innovation in caring for its customers.

“Today’s announcement will ensure that we continue to provide a class leading service to all our customers.”