Peugeot 206 GTi 180

Granted, the standard 206 GTi is a fine motor, lively to drive with a healthy dose of agility thrown in. But with the Honda Civic Type R and Renault Clio 172 beating it for horsepower and the MINI Cooper S thumping it in the looks department, the 206 has been relegated to the unfamiliar position of also-ran.

The Lion is fighting back with this - the long-awaited 206 GTi 180, which arrives in showrooms this summer with the task of taking Peugeot back to the top of the hot hatch ladder.

We pitched the newcomer against its ancestors - the 205 GTi and 306 GTi-6 - as well as the standard current model, to see how the latest version fared. It shares the same basic engine as a conventional GTi, but the 180 has been extensively re-engineered for more torque and a 45bhp power hike.

The main improvement is the variable valve timing on the intake camshaft, which has effectively widened the torque band, allowing the motor to pull from even lower revs. A revised cylinder head - prepared by Formula One engine builder Mί¿½cachrome - further improves the flow of air through the unit. And it isn't only the powerplant that has been affected. To suit the new torque characteristics, the transmission has been reworked, with a longer first gear and a general bunching-up of the other ratios. As you might expect with all these mechanical alterations, the 180 provides a sharper and altogether more entertaining driving experience than the standard version.

The 12Nm hike in torque has improved drive out of corners, while the exhaust delivers a satisfying rasp as the revs climb above 4,000rpm. However, if you were hoping to leave drivers of the regular GTi trailing in your dust, you may be disappointed. Although the newcomer's in-gear performance is a second quicker from 30-70mph and nine-tenths of a second swifter over the 0-60mph sprint, there seems to be little to choose between them.

So where did the extra 42bhp go? You'll find out when you rev the 180's engine past the 4,000rpm mark. While the variable valve timing does a good job of massaging the torque spread, it's only when you work it hard and keep the tacho needle in the upper reaches of the rev band that this really feels the keener machine.

That noted, you don't need to be on first-name terms with the rev limiter to appreciate the 180's charms. The chassis has been modified to give a sportier drive, with stiffer springs at the front and a revised rear-axle arrangement. The changes improve body control and sharpen the turn-in without making the back end feel jumpy or nervous. Finally, we come to the question of design - something for which the standard GTi has received more than its fair share of criticism, due to its anonymous detailing and a general lack of sportiness. The good news is that Peugeot has given the 180 a seriously sharp set of clothes.

With 17-inch wheels, a subtle rear spoiler and twin exhausts, the car has definite road presence. The improvement continues inside, with a leather steering wheel, aluminium pedals and gearknob, plus revised instrument displays. The front seats are excellent, too, giving far better support than the standard car's.

At ΂£14,995, the 180 is priced bang in the middle of the hot hatch pack: the Clio 172 and MINI Cooper S cost less, but the Civic Type R is more. However, the 206's generous equipment tally includes ABS, climate control and a CD player. Whether that and the improved driving experience will be enough to tempt buyers away from the established class leaders is another matter...