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Peugeot's RCZ HDi blends head-turning looks with a sensible diesel engine. Steve Walker reports.

Fitment of a diesel engine removes some of the sharpness from Peugeot's RCZ coupe but it remains a fun car to drive and the extra torque creates a more relaxed character. Low diesel running costs are the icing on the cake.

It would be easy to go overboard when discussing the Peugeot RCZ. Not only is it a visually thrilling car with fine handling, it's from a manufacturer that had let its once proud reputation in these areas slip. Anyone who remembers pretty Peugeots like the 406 Coupe or sharp driving ones like the 106 Rallye and the legendary 205 GTi has been hoping for a return to form. Now that one has apparently arrived in the shape of the RCZ, it could pay to maintain a sense of proportion. By fitting its beguiling sports coupe with a prosaic 2.0-litre HDi diesel engine, Peugeot may have made this easier to achieve.

There are lots of options facing the modern compact sports car buyers but only a few of them involve diesel engines. We're accustomed to sporty little numbers like this relying on high-revving petrol power but in recent times, the demand for lower running costs has led manufacturers to experiment with diesel and some of the results have been favourable. Peugeot certainly has the technology to pull off a coupe in this mould with its HDi diesel engines continuing to rank alongside the top units of their type. The question is whether the RCZ HDi can deliver lower costs without taking the sheen off its driving experience.

The extra weight of a diesel engine is always going to be a factor in a two-seater sports car like the RCZ. The HDi model gains 80kg in kerb weight over the entry-level 1.6 THP petrol car and this is felt out on the road in slightly more sluggish responses and less bite when you pitch the car into a tight corner. Despite this, the RCZ still impresses and the diesel models actually take on a more relaxed feel which some customers might even prefer.

The abundant torque you expect from a diesel is very much in evidence with 320Nm generated at 2,000rpm. It gives the RCZ useful flexibility to accelerate from cruising speeds without dropping gears and there's still a 8.7s time for the 0-60mph sprint. Flat out, the top speed is 137mph and peak power of 163bhp is generated at 4,000rpm.

The extra weight of a diesel engine is always going to be a factor in a two-seater sports car like the RCZ. The HDi model gains 80kg in kerb weight over the entry-level 1.6 THP petrol car and this is felt out on the road in slightly more sluggish responses and less bite when you pitch the car into a tight corner. Despite this, the RCZ still impresses and the diesel models actually take on a more relaxed feel which some customers might even prefer.

The abundant torque you expect from a diesel is very much in evidence with 320Nm generated at 2,000rpm. It gives the RCZ useful flexibility to accelerate from cruising speeds without dropping gears and there's still a 8.7s time for the 0-60mph sprint. Flat out, the top speed is 137mph and peak power of 163bhp is generated at 4,000rpm.

There's no radical departure from Peugeot's tried and tested styling themes on the RCZ but equally, there's no denying it's a striking thing to look at. The nose is very Peugeot with the huge light clusters and air-intake then the deep bonnet contours flowing back to the A-pillars. The domed roofline has more than a hint of Audi TT about it and the aluminium foot arches provide a two tone effect.

The RCZ is at its most unorthodox around the back where the proportions of the car aren't helped by an extended rear deck that hints at an eventual folding hard-top version (which Peugeot strenuously denies). More impressive are the powerful haunches over the rear wheels and the trademark "double bubble" roof which has a pair of bulges that proceed down the rear windscreen.

We're told that the RCZ is more than just a pretty face and that it can contribute some practicality as well. The car has a front-engined 2+2 layout with exceedingly small rear seats that have increased headroom thanks to the roof bulges and a surprisingly big boot capacity of 384 litres (you only get 290 litres in an Audi TT). This space can be increased further by folding the rear seat backrests down.

The dash will be familiar to 308 hatchback owners and with cabin design and build quality being a 308 strongpoint, this is no bad thing. Special sports seats are fitted in the front with integrated headrests and the centre console slopes towards the driver to bring the controls within easy reach.

There are two RCZ trim levels and the HDi diesel engine is available with both of them. The Sport model opens proceedings with 18" alloy wheels, dual-zone climate control, rear parking sensors, ESP stability control and ASR traction control. The GT level is over £2,000 more expensive but brings leather trim, electric heated seats, automatic lights, automatic wipers and 19" alloy wheels. As for the diesel engine itself, it's around £1,800 more than the 156bhp 1.6 THP petrol engine and £500 less than the 200bhp 1.6 THP petrol that tops the range.

Diesel coupes are not the novelty they once were and the RCZ HDi goes head to head with the likes of Audi's TT TDI and the Volkswagen Scirocco that also has TDI power. It's priced at competitive levels to these models and the Alfa GT but is considerably more affordable than the Alfa Brera.

Just as we're not completely accustomed to seeing sports coupes with diesel engines, we aren't used to having them return 53mpg. That's what the RCZ TDI manages though and it's very similar to what you can expect in a diesel Audi TT or Scirocco. Emissions of 139g/km will also help to keep running costs down while Peugeot is banking on the RCZ's bold design to help protect its residual values from the fate some of its past models have suffered.

Diesel might not be the fuel of choice in a compact sports car but it has its advantages in the form of low running costs and plentiful torque. Peugeot's RCZ HDi plays up to these strengths while adding in the adventurous design and sharp driving experience that are common to all RCZ models.

The groundbreaking looks of the car may not suit all tastes and the extra weight of a diesel engine takes some of the agility away from the driving experience but the RCZ HDi delivers head-turning looks, lively performance and an engaging drive. Peugeot had been on a bad run with its sporty models but the RCZ rekindles some of the old excitement, even with a sensible diesel under the bonnet.