More than 30 years ago Peugeot unleashed what is quite rightly considered one of the finest hot hatchbacks in the history of hot hatchbacks, the mighty 205 GTI.

Mighty may seem an odd choice of words when there was only 104hp dragging the little Pug around by its front wheels but, because it weighed only 900kg, those horses made it quick enough to justify the description.

It’s been a while since Peugeot have reached those dizzy heights but, first with the 208 GTI and now with its bigger brother, the 308 GTI, the French firm seems to have rediscovered a little of its je ne sais quoi.

Under the bonnet is a 1.6-litre four cylinder petrol engine equipped with a twin-scroll turbocharger and pumping out 266bhp through the front wheels which, as it turns out, is more than enough to make the wheel squirm in your hands as you duke it out with the torque steer under hard acceleration.

Applied carefully – though not too carefully – and that power will take you to 60mph in a quick-enough-to-boast-about-it-down-the-pub six seconds on the way to a top speed of 155mph, assuming that it’s legal and safe to do so, of course.

The engine is pleasingly rorty, though a little bit more volume wouldn’t go amiss to bring the heartbeat of the car a little closer to the driver, and it pulls with a consistent and persistent keenness right across the rev range.

You get to change gear the old fashioned way with a short stick placed conveniently close to your left hand – there’s no paddle-shift gearbox option – but the six-speed manual is light, precise and slick with a satisfyingly positive action that won’t leave you feeling as if you’ve missed out.

The GTI rides on stiffer springs and uprated dampers and sits 11mm lower than the rest of the 308 range. The front track is 10mm wider than standard.

Unsurprisingly the ride is firm. There’s very little body movement, particularly noticeable when you’re carrying a bit of speed through a bend, but it’s compliant enough to remain composed and settled over bumps.

Though the car is quick to respond to changes in direction the steering doesn’t provide a great deal of feedback and can feel a little light when you start to pick up the pace. That can, initially, slow progress until you become attuned to the crisp, well-balanced dynamics.

Some of its rivals can be relied on to keep hanging on in the corners as the lateral forces increase while the Pug requires a little restraint but for the average driver – and I very much count myself among their number – the grip available is more than enough to make a quick sprint through the countryside fun.

You’ll notice straight away that there are very few buttons in the cabin but, located just behind the gear lever are, perhaps, the two most important ones: The Start and Sport buttons. Select Sport and the steering weights up, the dials change from virginal white to demonic red, the multi function display shows power, torque and boost, the engine noise is amplified and the throttle mapping is more responsive.

Everything is just better, then.

Peugeot have made a conscious effort to remove as much clutter from the passenger space as possible. The minimalist, angular design looks thoroughly modern, sleek look.

It’s well put together too, with some decent quality materials and some genuinely nice details. The instrument binnacle sits high above the tiny steering wheel – according to Peugeot so that you don’t have to take your eyes off the road for too long – and its design is mimicked by the 9.7in touchscreen surround.

That touchscreen controls the navigation, entertainment and air con, which is why there are so few physical buttons in the car. However, because everything is controlled centrally it can be a little fiddly navigating the menus just to turn the air con up a degree or two but the touchscreen is at least responsive and the interface slick.

When I tested the GTI’s wannabe sibling, the GT Line, earlier this year, the sat nav and I had a bit of a falling out after it led my on an unnecessary detour, missed a turning and tried to fob me off with slightly dodgy instructions.

I’m pleased to say that I had no such trouble this time and it worked flawlessly.

The seating is set quite high and, while I had no issues with getting myself comfortable, I found it impossible to get the driving position absolutely spot on and, in the end, I was forced to endure with the top of the steering wheel, small though it is, obscuring a few, non-essential information at the base of the instrument binnacle.

Front seat passengers are blessed with plenty of head and leg room but anyone of above average height will not thank you for being shoved in the back where space is a little more restricted. Access is easy enough thanks to doors that open wide but once you’re in it can feel a little on the cosy side.

The payoff is that you get a boot that’s bigger than a lot of the 308’s rivals – 470 litres with the rear seats in place and 1,185 with them stowed away – but the slightly awkward shape means it’s difficult to make the most of all that space.

Peugeot have made some great drivers’ cars, and the 308GTI is another one to add to that illustrious list. The trouble for the firm now, however, is that there are plenty of other great cars, some of them greater, competing for enthusiastic motorists’ money. Judged in isolation, however, the 308GTI is undoubtedly a brilliant car and, should you invest your hard-earned, you’re unlikely to be disappointed.

Peugeot 308 GTI

Price: £28,155

Engine: 4-cylinder, 1598cc turbocharged petrol

Transmission: 6-spd manual

Power: 266bhp at 6000rpm

Torque: 243lbft at 1,900-5,000rpm

Acceleration (0-60mph): 6.0sec

Max speed: 155mph (limited)

Combined: 47mpg

Emissions (CO2): 139g/km

For more information visit www.peugeot.co.uk