After 15 years without a Golf GTI rival, long-time hot-hatch specialist Peugeot has hit back and hard with the 308 GTi. Should VW be worried?

WHAT IS IT? Peugeot has strutted straight into Golf GTI territory with the 308 GTi, which brings two performance tunes, impressive efficiency, seriously uprated suspension, stronger brakes, and subtle yet menacing visual upgrades designed to shake up an extremely competitive class. The French brand once dominated the hot-hatch genre, so drivers ought to take notice.

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MAIN RIVALS Ford Focus ST, Holden Astra VXR, Renault Megane RS 265, Subaru WRX, Volkswagen Golf GTI

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PLUS:Steering, handling, poise, performance, ride, design, cabin, refinement, practicality, model choice MINUS: Disappointing gear shift, silly anti-clockwise tacho, no manual handbrake, not much else

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So any scepticism towards the 308 GTi is understandable, especially as it is down on capacity (1.6 versus 2.0 litres), up on price (10 percent over the Volkswagen equivalent), and lacking an auto option.

But upsetting the establishment defines the best hot-hatches, and herein lies the (other) Lion brand’s greatest opportunity to roar once more.

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The upshot in the $44,990 250 is rapid off-the-line acceleration, which builds hastily as the revs soars towards the 7000rpm cut-out. Furthermore, selecting Sport mode is like choosing the red pill, with the Peugeot’s performance – complete with amplified exhaust – stepping up a notch.

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Yet it’s the dynamic delicacy – courtesy of the latest 308’s brilliantly efficient EMP2 architecture – that is outstanding, from precise, measured, and intoxicatingly tactile steering, to the chassis’ control, which feels simultaneously planted and light-footed. Aided by the 270’s limited slip diff and terrific brakes, it devours corners. Yet the suspension – lower, firmer, and stronger, but essentially the same MacPherson struts/torsion beam set-up as in lesser 308s – can still ably soak up the rough stuff. No adaptive dampers required, even on 235/35ZR19s. Result? The GTi’s athleticism isn’t at the cost of comfort.

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Minor aberrations aside, the 308 GTi has the alacrity and grace to darken the Golf GTI’s days. It’s as if Peugeot needed all 15 years to recapture the 306 GTI-6 spirit. The ultimate hot-hatch shootout looms…

SPECS Model: Peugeot 308 GTi 270 Engine: 1598cc 4cyl, dohc, 16v, turbo Max power: 200kW @ 6000rpm Max torque: 330Nm @ 1900-5500rpm Transmission: 6-speed manual Weight: 1205kg 0-100km/h: 6.0s Fuel economy: 6.0L/100km Price: $49,990 On sale: Now