ANOTHER hot hatch is on the way from Peugeot with the five-door 308 getting the GTi treatment.

Turbocharged to deliver up to 270ps the new model is entering a domain dominated by the likes of the Ford Focus ST and the Volkswagen Golf GTI.

There's also even hotter stuff to contend with in the shape of the Golf R, the Audi S3 and the Renaultsport version of the Megane leaving fans of such beasts spoilt for choice.

To compete, Peugeot had to come up with something special and in every way the new 308 GTi is out of the norm.

To prove the point Peugeot staged an unusual run off by pitting the 308 GTi against an F2 Powerboat at the National Water Sports Centre at Holme Pierrepont near Nottingham.

Up against powerboat champion Colin Jelf the GTi driven by Peugeot racing driver Bradley Philpot sprinted alongside the 2,000 metre course as the race-trim motor boat capable of 0 to 60 in just five seconds and a top speed of 126mph on water was put through its paces with both car and boat completing the run in the time it takes a kettle to boil.

Developed by the French car maker's motor racing technicians at Peugeot Sport the new GTi is not only very quick but it is also very subtle about the way it goes about its business.

The 308 GTi can accelerate from 0 to 60 in just six seconds, quicker than the Golf and the Focus yet does so in a fashion that for a sporty hatch is a breath of fresh air.

There is no shortage of power from the well-honed 1.6-litre engine but the way it unleashes its might comes with an unusual degree of refinement.

It feels very smooth on the road but demand grip and it comes in spades, sticking through corners as if by suction.

A lot of that is down to a limited slip Torsen differential that is fitted as standard to the higher powered model - one of two versions of the 308 GTi Peugeot is about to release.

With the 270ps engine the 308 GTi is priced from £28,155 and comes with some serious additions including larger brakes and 19-inch alloys as well as the special diff.

There's also sports seats and the option of a bespoke ‘Coupe Franche' paint job which for £1,300 sees the car hand finished in red at the front and black gloss at the rear.

It's a treatment done during production at Peugeot's Sochaux factory in France where the GTi is assembled alongside the regular range of 308s.

A cheaper version of the GTi with the engine tuned to deliver a lesser 250ps is priced from £26,555 but still includes plenty of kit including sat nav, LED head lamps and sequential indicators which scroll across the light clusters in the direction of intention when operated - all classy stuff.

The 250ps GTi is marginally slower at 6.2 seconds 0 to 60 but is not lacking in any department and has its own characteristics.

While the 270ps version has a genuine steely edge - as it demonstrated when we took it out on a tight handling circuit at the Donington Park race track in Leicestershire - the 250ps model has a degree of compliance which makes it well suited to everyday road use.

Both can light up on demand and working through the six speed manual box is slick and positive, yet they exhibit a degree of refinement you won't find in other hot hatches.

They are quick, rewarding but have a degree maturity that makes them exceptionally comfortable - a hot hatch for all the family.

The engine is a development of the one Peugeot Sport created for the performance-oriented RCZ R coupe and the experience can be enhanced by a sport button which tweaks throttle and feel while adding some extra noise from the twin exhausts.

In sport mode the instrumentation also changes to become backlit in red and includes read outs showing the real-time turbo boost, torque and power - interesting reading for those who want to know exactly what is happening under the bonnet.

Interior trim and finish is out of the top drawer with detailing including an alloy gear knob and foot pedals, a red steering wheel band plus red stitching and perforated finishes on the door grab handles giving the GTi an upmarket feel.

For a true hot hatch it is at the posh end and externally it is styled conservatively. There is no overt venom about its looks the only giveaways being its stance, red lettering above the grille and GTi badges, large brake callipers inside the wheels and some sharp edged aero splitters at the front.

Both versions can top out at 155mph yet Peugeot being masters of economical engines can claim an official fuel return of 47.1mpg with emissions of 139g/km matching the Golf GTI and putting the rest to shame.

We didn't spare the horses on our drives and notched up an average of 38mpg with either engine - impressive stuff and all helped out by an efficient stop/start system which is standard fit.

This is a very modern take on hot hatch motoring - a GTi with a difference but true to the qualities of the legendary 205 GTi of the 1980s and as such it's going to put a smile on many a motorist's face.