Peugeot has upped its 308 GTi’s competitiveness in the hot hatch face-off by undercutting its closest German rival, the Volkswagen Golf GTI Performance 1, by $2000.

To do this, the pricing for the latest Peugeot 308 GTi 270 has been slashed by $4000 to bring it to $45,990. A Golf GTI Performance costs $47,990.

Besides the price drop, the Pug starts looking like the better option when you consider its gear, and the fact that you can only get it in manual – the VW is DSG-only.

However, the GTI has 40Nm more than the 330Nm Pug, and MOTOR has actually managed a 6.06s 0-100km/h sprint in a Golf GTI Performance.

Strangely, Peugeot also timed a standing 1km run, with the 308 GTi 270 running 25.3 seconds across 1000m.

The GTi is also quite well equipped in terms of its features when it comes to fighting the Golf, it has a Torsen limited-slip differential between the two front wheels, which are 19-inch alloys wrapped in Michelin Pilot Super Sports.

The Pug is fitted with some rather bucket-like and well-bolstered seats, while the VW’s are a little more comfort-oriented.

In addition, the 308 has a rather striking paint option called ‘Coupe Franche,’ or ‘clean cut,’ which adds a black finish to the rear of the car, contrasting with either the blue or red colour options.

In the end, it’s down to preference, but the Peugeot 308 GTi 270 sure makes a strong case for itself.