The first diesel hybrid production car will be Peugeot's 3008 HYbrid4, to be shown in public at Paris at the end of the month.
The crossover hybrid will use a 2.0 diesel engine with 163hp, integrated with a 37hp electric motor system.
Peugeot say it will provide a 35 percent reduction in fuel consumption over the standard diesel, as well as combined use emissions of 99g/km.
The electric motor drives the rear wheels when in use, and so offers the advantage of AWD when conditions need it.
The car will be able to in zero emissions electric-only mode in city traffic conditions.