1.2-litre three-pot turbo could be made available across more models locally.
Peugeot's local division is mulling a 96kW 1.2-litre petrol engine for a "broader range" of models, namely the 3008 crossover and 308 Touring wagon.
Currently used in models like the 208 light hatch, 2008 SUV, and 308 small hatch, the 'PureTech' turbocharged three-cylinder unit makes the aforementioned 96kW of power at 5500rpm, along with 230Nm of torque at 1750rpm.
Peugeot claims a 10.5-second sprint from 0-100 when fitted with the six-speed automatic, while fuel use is rated at 5.5L/100km on the combined cycle, no doubt helped by its relatively light 1270kg kerb weight.
Overseas this engine is offered with a six-speed manual and six-speed automatic, local models are auto only.
"The adoption of the PureTech, turbo-petrol, drivetrain in a broader range of Australian bound Peugeot models is currently being investigated with PSA in France," said Tyson Bowen, corporate affairs and PR manager for Peugeot Citroen Australia.
"[It] could easily be added to more models if the business case makes sense for Australia."
Should the new powertrain be made available Down Under, it would likely serve as a new entry point for the 3008 and 308 Touring ranges.
Currently, the 3008 Active with the 121kW/240Nm 1.6-litre turbo petrol is listed at $36,990 before on-roads, quite a bit more than most 'base' models in the medium SUV segment.
With the smaller engine, though, the 3008's starting point could dip below the $35,000 barrier.
Meanwhile, the 308 Touring is only available currently with the 110kW/370Nm 2.0-litre turbo-diesel in top-spec Allure trim, priced from $37,990 before on-roads.
Given the Touring is $2000 more than the equivalent diesel-powered 308 Allure hatchback, a petrol-powered wagon would ask for a similar premium over the 1.2-litre 308 Allure hatch, currently priced at $31,990 plus ORCs.
The 308 Touring's closest competitor is the Volkswagen Golf wagon, which is priced from $29,250 in entry-level Trendline guise, topping out at $37,490 in flagship Highline trim with the optional 110kW 2.0-litre turbo-diesel.