These are exciting times for Peugeot. The RCZ is arguably the best-looking model since the Audi TT hit the streets, while the 508 is winning huge acclaim for its quality and design.

But it’s the 4007 which, arguably, started the company’s rich vein. This was the marque’s first 4x4 SUV (sport utility vehicle) or off-roader, and for a first effort, it’s gone down pretty well.

Petrol-heads will know that Peugeot had a hand from its friends, of course. It’s the way things are now with companies sharing design and engineering costs in the name of efficiency.

The 4007 is strongly related to the Citroen C-Crosser and Mitsubishi Outlander. That might have been a problem a few years ago, but modern motorists are more bothered about quality, value for money and style.

In those terms, the 4007 is a very competitive model.

Each company, of course, injects their own engines into the equation, which is good news for Peugeot given that it produces some very impressive powerplants.

They mean the 4007, a fairly substantial vehicle, offers power, economy and low emissions, which is no mean feat in the 4x4 market.

The Outlander uses a Volkswagen engine but Peugeot, which tends to work with BMW on smaller units, has opted for the 2.2 HDi diesel from Ford, which can also be found in the Freelander 2. It all comes together, making the 4007 look and feel like one of the more expensive SUVs on the market.

Style is all important in this market, and Peugeot’s designers are among the best in the industry. So while the 4007 looks rather like the Mitsubishi from the side, the front and rear are distinctly different.

The huge front grille and the massive logo aren’t to everyone’s tastes, but certainly make the car stand out from the crowd. At the back, it is a little more elegant.

The 4007 has the benefit of seven seats, with an occasional third row that pulls out of the load floor. The other seats in the cabin are solid and comfortable but those at the rear are narrow and thinly clad. A further drawback is that they eat into luggage space.

With all seven seats occupied, there is just 184 litres of space under the parcel shelf. When the third row is not in use, the capacity increases to 510 litres. The middle seats have a 60-40 split and so there are various configurations of load and seating arrangements, resulting in a maximum loadspace of 1,686 litres if loaded to the roof.

Although there are hints of Outlander, Peugeot has given the cabin its own style. The dash is terrific, as it always is with Peugeots.

There are two trim levels – SE and GT. The test car is the former, but the latter adds leather upholstery, heated seats, CD autochanger, Xenon headlights, rear parking sensors and dark-tinted windows. Big 18in alloys replace the 16in alloy wheels of the SE but otherwise the features list is the same, comprising cruise control, automatic air-conditioning (which also cools the top glove box), with climate control and filters, a radio/CD/MP3 player and heated, folding door mirrors.

There are no petrol options, so both versions of the Peugeot 4007 have the 2.2 HDi diesel engine, which produces 156bhp. It is a fine engine which gives this vehicle the performance of a reasonably quick hatchback, along with quite admirable economy.

Peugeot 4007 SE 2.2 HDi:- PRICE: £25,395.

ENGINE: a 2,179cc four-cylinder diesel engine generating 156bhp.

PERFORMANCE: Top speed 124mph, 0-60mph in 11 seconds.

COSTS: urban (town) 30.7mpg; extra-urban (country) 48.7mpg; combined 40.4mpg.

EMISSIONS: 185g/km.

INSURANCE: Group 27 (1-50).

WARRANTY: Three years, 60,000 miles.

Steve’s ratings: Performance: 4/5 Economy: 2/5 Ride/Handling: 3/5 Space/Practicality: 4/5 Equipment: 4/5 Security/Safety: 4/5 Value For Money: 3/5 OVERALL: 4/5