The French manufacturer defied a dip of 11.5 per cent in the new car market to sell more than 7,600 new vehicles in the month of November.
This helped to increase its market share from under five per cent to 5.45 per cent compared to November 2009.
Peugeot puts the sales success down to the innovative Just Add Fuel campaign, which offers customers the chance to group all payments for servicing and maintenance into one monthly payment.
The Just Add Fuel programme, as the name suggests, means the driver only has to worry about the fuel for the car, with all other payments covered under the scheme.
Available on new models such as the 3008 crossover, 5008 MPV and stylish Peugeot RCZ 2+2 coupe, the Just Add Fuel programme was a major factor in the increase in sales, according to Peugeot.
The Peugeot 207 supermini, rival to the likes of the Ford Fiesta and Vauxhall Corsa, was the best-selling Peugeot model in November, even making it into the top ten alongside perennial favourites such as the Ford Focus hatchback.
It was closely followed by the Peugeot 3008, which accounted for nearly 17 per cent of all Peugeot car sales, just narrowly missing out on the top ten list for November.
However, the brand was also boosted by a massive increase in its van sales, with the Peugeot Bipper, Peugeot Partner and Peugeot Boxer boosting sales by 25 per cent in November.
The Peugeot Bipper in particular has been one of the most improved models since 2009 with a 105 per cent increase in sales.