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The new special edition Peugeot 107 Millesim offers a sat nav-enabled smartphone and road-tax free motoring to celebrate the company's bicentenary.

The 107 Millesim - which shares its name with an upmarket beach bar in St Tropez - is based on the Urban Plus model and is available as a three-door and five-door hatchback.

Power is provided by a 1-litre petrol engine, which is capable of returning 62.7mpg and emitting just 106g/km of CO2. This means it's free to tax for the first year and only £20 a year after that.

It comes with 14-inch alloy wheels, air-conditioning, ABS, electric front windows, four airbags, remote central locking and a single CD player with MP3 connectivity, as well as blue seat trim, blue air vent surrounds, a blue instrument binnacle and Millesim 200 badging.

All models ordered in June also receive a free Nokia 5230 smartphone with satellite navigation and an in-car mounting kit.

The Peugeot 107 Millesim is on sale now, priced at £9,545 for the three-door edition and £9,895 for the five-door model.

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