Who can forget the Peugeot 205 GTi? For many it was considered to be the definitivel hot hatch of its generation when it burst onto the scene in 1984 with a 1.6-litre engine under its bonnet. It was followed two years later by a 1.9-litre version but many people, and I’m one of them, considered the additional power actually harmed, rather than enhanced, the little car’s character

For those of you who missed it, the 205 GTi was the archetypal hot hatch. For cheap thrills and practicality it was unrivalled and hormonally-challenged adolescents everywhere could be found drooling at the prospect of owning one.

It was a magic formula that has proven difficult to replicate. Part of that reason may be that tastes have become more sophisticated. As technology becomes more invasive and pervasive, a moderately powerful engine in combination with a well-sorted chassis is no longer enough to persuade people to part with their money.

The 205 GTi existed in much simpler times and, as a result, it had a much simpler task. Fast forward 20 years and its spiritual successor, the 208 GTi, exists in world of greater competition and greater expectations. The question is, can it live up to them?

The styling leaves you in no doubt as to the 208’s ancestry. It’s been a story of steady evolution, rather than revolution and, although the 208 enjoys some thoroughly modern touches such as LED running lights and indicators, the profile is reassuringly familiar.

Sitting on handsome 17in alloys and with subtle side skirts, large rear spoiler and twin exhausts, the GTi certainly looks the part. There’s a fair old smattering of chrome detailing which just about errs of the side of tastefulness.

Under the bonnet of the GTi is the 1.6-litre four-cylinder turbocharged petrol engine pumping out 197bhp which will be familiar to owners of the RCZ. To ensure none of that power goes to waste Peugeot have reinforced the front subframe, fitted fatter struts, sports springs, revised dampers and beefier anti-roll bars. Meanwhile bigger brakes and reworked steering complete the overhaul.

One area where Peugeot have quite rightly adopted the less is more approach is the car’s weight, which is not insignificantly reduced from the 207 GTi’s robust 1,160kg to a more svelte 995kg. The weightloss is no mean feat considering the decent equipment levels and less mass means greater efficiency and improved handling so you should notice the difference on the road and in your wallet.

Settle yourself into the supportive, comfortable sports seats and you’re immediately confronted with the same problem that afflicts the 208’s big brother, namely an instrument cluster that’s partly obscured by the small but thick-rimmed flat-bottomed steering wheel.

There’s gloss-black inserts with flashes of red that perhaps don't succeed in quite achieving the desired effect while the infotainment system looks like an afterthought, so disparate is its styling from the rest of the dashboard. It’s all the more disappointing because the cabin is, generally, very well appointed. The switchgear feels nice and robust to the touch and the contrast red stitching is a welcome and attractive addition.

There are, unlike the 308, physical buttons to operate the dual zone air con but other controls – audio, sat nav and Bluetooth handsfree and audio streaming – are relegated to the touchscreen. It’s crisp, clear and responsive and, again unlike the 308 I drove last week, the sat nav was delightfully devoid of glitches and misdirections.

There’s no shortage of headroom for passengers in the front and rear while legroom in the back is pretty much on a par with other cars in this class. In other words, not much if you’re thinking of carrying four adults.

It’s easy enough to put the mismatched interior to one side once you’re on the move, however, thanks to the flexible, punchy engine that has a willingness to pull hard even from low down. True, there’s very little in the way of accompanying soundtrack, just a distant thrum with the occasional whistle and whine thrown in. That flexibility and refinement does mean that the GTi can be a hospitable companion on longer journeys although the peace is somewhat disturbed by a significant amount of wind noise at higher speeds.

The fact is, however, that its tackling corners where the GTi really needs to shine and, to a certain degree, it does. It’s worth noting that, despite its heritage, this is no throwback. The 208 GTi is an altogether more mature proposition with a much broader target audience and, as such, some compromises have been made.

As a consequence despite stiffer springs being fitted the ride height has been reduced by an almost imperceptible 8mm and, while the steering is consistent and nicely weighted, it lacks the feel required for especially rapid point to point driving. The small-diameter wheel does go some way to compensating for the lack of directness with its quickness and the car is nimble enough to keep things lively, progress aided in no small part by the slick gearbox and the delightfully tactile sculptured gear knob.

Turn-in is progressive and, although there’s a touch more lean than you’d perhaps expect, there’s never any hint of unruliness and, of course, the flipside is that there’s a touch more leniency over imperfections.

It’s easy to look back at the 205 GTi and its raw, unfettered talents with unbridled enthusiasm but the truth is that times have changed and the market for so-called ‘drivers’ cars’ is a niche one. The 208 GTi is not the spiritual successor to the 205 but then, it was never meant to be. It’s more sophisticated, more refined and better equipped. It’s also more than a one-trick pony, able to cope with long-distance hauls as competently as a quick blast through the countryside. It’s true that some of the styling touches won’t be to everyone’s taste and are, in fact, closer to brash than bold, but there’s no doubting the intent.

The underlying truth is that it’s impossible to say whether it’s a better car than its much-loved forebear because expectations are far removed from what they were in the 1980s. One things that you can be absolutely certain of: The 208 GTi is the right car at the right time.

Peugeot 208 GTi Prestige

Price: £19,950 OTR

As tested: £20,445

Engine: 1.6-litre turbocharged 4-cyclinder petrol

Transmission: 6-speed manual

Power: 200bhp

Torque: 275Nm @ 1,750rpm

Acceleration (0-62mph): 6.8sec

Maximum speed: 143mph

Urban: 34.4mpg

Extra urban: 60.1mpg

Combined: 47.9mpg

Emissions (C02): 139g/km

For more information about Peugeot cars click here.