THE world of hot hatches has been bubbling along nicely but now Peugeot has raised the pot to boiling point with the introduction of its all-new 308 GTi by Peugeot Sport.

It is driven by the same engine and gearbox that wowed petrol heads in the RCZ R but it's just got even better thanks to a higher pressure direct fuel injection system which results in better power and torque distribution.

To put that into layman's terms there are two versions a - 250ps and a 270ps - the latter can deliver a 0-62mph sprint time of just 6.0 seconds and tops out at 155mph.

The lesser powered option is no slouch either taking just 6.2 seconds to sprint to 62mph and also maxing out at 155mph.

First impressions are vital and the 308 GTi looks stunning from any angle.

It oozes sporty prowess without looking ridiculously over-stated with giant spoilers and gaping air intakes.

That said, if you really want to stand out from the crowd there is the two-tone red and black paintwork option known as Coupe Franche with a sharp diagonal line separating the two shades. Otherwise customers can select from six colours.

Instant eye-catching features include the chequered flag-styled grille with bright red bumper smile underneath and red ‘Peugeot' lettering on top.

Then there is the gloss black air intakes (stylish not garish), two large exhausts, a rear diffuser, 18 or 19-inch alloys depending on the model, tinted windows, full LED headlamps with LED daytime running lights and front sequential indicators.

The interior oozes premium quality and is packed with on-board technology, such as a 9.7-inch multifunction colour touchscreen, sat nav, DAB digital radio, Bluetooth connectivity, dual zone climate control, a reversing camera and sports seats on the 250 model or GTi bucket seats with Peugeot Sport branding on the 270 version.

The 270 model also gets red painted Peugeot Sport brake callipers with 380mm front discs and a Torsen limited slip differential to improve grip when cornering by channeling the torque to the wheel with the highest traction. It makes it easier to accelerate faster out of bends.

The 308 GTi also features a ‘sport' button that really ups the ante. The dashboard instrumentation turns from a subtle white to a racy red.

In this mode, the driver receives extra information about power, torque acceleration etc., the engine sound turns into a loud growl and the accelerator becomes more edgy and responsive so enhancing the all-round driving dynamics.

But the 308 GTi is not all about fast laps and sprint times, it's the manner in which the car conducts itself that really impresses.

We tried both models on a lengthy road route that involved busy rush-hour traffic, open country lanes and fast moving motorways and then we headed for the track.

First up was the 1.6-litre 250bhp model priced at £26,555 (£27,680 with metallic paint and panoramic glass roof options). Economy on this car is a combined 47.1mpg with carbon emissions of 139g/km.

On public roads, the car was exceptionally refined. The vehicle sits 11mm lower than the ‘normal' 308 range and that is noticeable when taking country bends at pace - it is really grippy and the tiny sports steering wheel is beautifully precise and responsive.

Power levels seem limitless and the cabin is really comfortable with room for a couple of adults in the back too. At times I found the touchscreen a little fiddly to operate whilst moving and it's quite easy to touch the wrong button at times. But that aside the car handled itself incredibly well.

Next up was the higher-powered 1.6-litre 270bhp model priced at £28,155 (increased to £29,330 with special paint and a panoramic glass roof). This car can deliver combined fuel economy of 47.1mpg with emissions of 139g/km.

Once again, the test car delivered an exhilarating drive. The bucket seats were really supportive and the power at your disposal seemed limitless. Acceleration through the six-speed manual gearbox is smooth and as rapid as you want it to be and the sure-footed road holding is also impressive.

Then it was time for some fun and games on the track. We drove both models back to back around a slalom course and then on a faster more open track. The first car - the 250 - was great, but the 270 model was awesome by comparison. To be honest it didn't seem that much faster, but it was certainly more controlled and the improved braking along with acceleration out of bends was clearly noticeable.

To sum up, both new cars are great newcomers to the hot hatch line-up but for me the pick of the duo would have to be the 270bhp model which costs just £1,600 extra.

It is great to see Peugeot Sport - the company's accomplished competition department - taking such a strong interest in road cars that we can all enjoy the benefits of.

GTi stands for Grand Tourer Injection, but has in recent years become a term generally associated with hot hatch performance cars and now the famous GTi badge has finally reappeared in the medium car segment courtesy of the rather magnificent Peugeot 308 GTi by Peugeot Sport.