U0163 Peugeot 408 shows up when there's an electrical problem that causes the fuel volume regulator to malfunction and open. It's quite an unusual problem and likely intermittent. Other serious codes may cause this code to pop up, and they may come with dangerous drivability issues that may expose you to safety risks and cause damage to the engine in the long run.
Possible Causes :
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Replace the oxygen sensor that is downstream from the catalytic converter on the side of the engine that does not contain cylinder #1. Also, if a oxygen sensor code stating "heater circuit malfunction" the sensor has most probably failed. With the valve disconnected, the red voltmeter lead should be attached to the IMRC valve power wire and the black voltmeter lead connected to ground. Use the DVOM to test resistance and continuity on all system circuits if actuator and sensor resistance levels are in compliance with manufacturer's specifications.
Diagnostic trouble code U0163 Peugeot 408 is not difficult to diagnose and repair. Thus, it always pays to have a qualified technician to look after your vehicle should this error code arise.
Diagnosing this code requires the engine to be in good running shape, without unmetered air entering the engine. If other codes that relates to misfiring condition, lean running or air entering the engine is present, then you must first fix those error codes before U0163 Peugeot 408.
Fortunately, U0163 Peugeot 408 is a fairly common OBD code, meaning that it applies to all makes and models of vehicles made after 1996.