Since the scrappage scheme ended in April this year, car manufacturers have been offering discounts and deals to maintain sales in what has become a difficult time for the industry.
Now Peugeot has teamed up with Nokia to offer a free Nokia 5230 smartphone and satellite navigation to all customers this month.
The system features in-car and on-foot satellite navigation and also allows users to record their own guidance instructions for the device.
The satellite navigation system boasts a search function and a social media aspect whereby users can share locations, weather, events and guides.
Ollie Griffin, Manager, Brand Advertising & Communications Marketing – Peugeot, commented: "I am delighted to announce this partnership with one of the world’s most recognisable mobile phone brands – Nokia. It’s excellent to give our customers a great added extra when buying a new Peugeot car."
The launch of the offer coincides with the release of Peugeot’s 200th anniversary 207 Special Edition Millesim 200 model and the imminent launch of the widely acclaimed RCZ coupe.
New car sales are expected to slump in 2010, but many manufacturers such as Ford are bucking the trend after cutting prices on many of its models.
Other manufacturers are offering extended warranties or new trim levels with more equipment to boost demand.
Peugeot hopes free satellite navigation and a product offensive featuring 14 new releases in three years under the New Lion badge will increase sales in the European market.