Sales of traditional saloons have been declining for the better part of a decade now, to the point where some manufacturers are simply no longer building them, preferring instead to focus their resources on grabbing a slice of the SUV sales pie.

Peugeot, however, are keeping faith as the arrival of the latest 508, reviewed here, demonstrates.

It isn't simply a case of more of the same, however, because the new car shuns the three box-styling of its predecessor and adopts a more svelte and sporty 'fastback' profile. If you want something a little more practical there's also a redesigned estate badged the 508 SW.

The new 508 is lower and wider than the previous model, giving it a squatter and more purposeful profile. LED daytime running lights that are cut deep into the bumper give the front end an even sharper signature.

The sloping roofline blends into the rear hatch given the 508 a silhouette that exists in that grey area somewhere between saloon and coupe. It boasts elegant frameless doors and alloy wheels that are designed to fill the wheel arches.

The LED rear clusters sport the firm's signature 'claw effect' lighting.

The interior is fitted with the latest interpretation of the firm's i-Cockpit, which is comprised of three elements: the small, leather-wrapped steering wheel, a 10in capacitive touchscreen and a 12.3in head-up digital instrument display.

Now, I don't think I've made any secret of my dislike of the small-diameter steering wheels Peugeot have adopted and I find my disdain increases in direct proportion to the size of the vehicle. Not only does it feel out of place in a car as large as the 508 it also, as it does in very Peugeot that I've reviewed, make it impossible for me to get the driving position quite as sorted as I'd like.

Build quality really impresses, however, and there is plenty to like about the cabin. There's a premium feel to the materials and surfaces used throughout the passenger space and there are some genuinely nice touches, such as the piano key-style shortcut buttons. It's worth pointing out that I had trouble reading the icons embossed on the surface of the switches which meant taking my eyes off the road for longer than I would have liked.

The interior is given a further lift with contrast stitching, flock-lined door pockets and aluminium pedals.

My review car arrived in GT Line spec which boasts a generous list of standard equipment including ambient lighting, faux-leather heated seats, automatic lights and rain-sensing wipers, LED lights, a wireless phone charger that sits in a small cubby behind the centre console, a reversing camera and 18in wheels.

There's ample room for human beings of above-average height in the front but adopting the fastback styling with its rakish profile means that taller passengers in the back will notice the lack of headroom. Legroom, however, is good.

Rearward visibility takes a hit thanks to that svelte profile but you're helped out by the inclusion of rear parking sensors as standard across the range. Allure trim and above get front sensors as well as a rear-view camera. The thick A-pillars and small side windows compromise the view out the front and sides too, meaning you have to take a little extra care at junctions and roundabouts.

At 417 litres the boot is 14 litres larger than the outgoing model's and the hatchback tailgate creates a large aperture which makes loading and unloading bulky items easier. Fold the rear seats flat and luggage capacity grows to 1,577 litres, which is just 61 litres short of the last SW's total. There's even space for a spare wheel beneath the boot floor.

There is a choice of two petrol and three diesel engines. The entry level 1.5-litre diesel is available with a manual or an optional automatic gearbox while the auto box is standard on all other models.

The 1.5-litre diesel produces just 128bhp while the 2.0-litre BlueHDi is available with either 161 or 174bhp. The petrol units are both 1.6-litre PureTech units with either 179 or 221bhp on tap.

The 1.6-litre petrol unit beneath the bonnet of my review car was smooth and responsive and refined. It doesn't pull particularly well from low revs so you need to work it quite hard to extract the best performance from it.

Adaptive suspension is standard for top-of-the-range models and available as an option on most others. It allows you to select from four driving modes: Eco, Sport, Comfort and Normal. Comfort and Normal modes allow the car to float a little uncomfortably over crests as speed and, while Sport adds some welcome weight to the steering and stiffens the ride up, the differences are negligible.

Whichever mode you're in you'll find that the 508 is a little fidgety over broken surfaces whatever speed you're travelling at.

Even with the suspension in its softest settings the 508 does a decent job of resisting body roll through corners and the steering is precise and consistent although a little more feedback would be welcome. There's a decent level of grip at the front end, too, so it's entirely possible to enjoy a sprint through the countryside should you be so inclined.

The automatic gearbox can be a little lethargic around town but out on the open road it proves impressively smooth and responsive. The start/stop system is a little more intrusive that you might like.

There is no denying the fact that the 508 is a devilishly good-looking car and if you're not concerned about the badge on the nose, is certainly a worthy rival for some of the more premium - and pricey - machinery that many buyers crave.

It's slinky silhouette does mean you have to accept slightly cramped rear accommodation and restricted visibility while the ride can be a little fidgety, however, fit and finish in the cabin is generally impressive and there are some genuinely nice details, such as the piano-key shortcuts.

The long list of standard safety equipment, which includes lane-keeping assist, automatic emergency braking with pedestrian detection and a driver attention monitor, helps make an even more compelling case for adding the 508 to your shopping list.

Peugeot 508 1.6l PureTech 180 EAT8

Price from: £26,030

Engine: 1.6-litre PureTech 4-cylinder petrol

Transmission: 8-speed automatic

Max power: 181hp

Max torque: 250Nm @ 1,650rpm

Max speed: 140mph

0-62mph: 8sec

Low: 31.2 - 29.6mpg

Medium: 43.3 - 38.8mpg

High: 51.5 - 45mpg

Extra high: 45.6 - 38.6mpg

Combined: 44 - 38.8mpg

Emissions (CO2): 114 - 121g/km

For more information visit www.peugeot.co.uk