The Peugeot 208 has been a familiar sight on our roads since its introduction in 2012, and if you look very closely you’ll find a GTi badge on the bootlid of some first generation models. However, the brand said goodbye to the famous acronym for the second generation, saying that there would be no performance variant of the 208 — at least for road use.

Peugeot has successfully been building rally-ready versions of the 208 which have proven popular for the lower rungs of the motorsport. In fact, 560 examples of the 208 have already been made to Rally4 specifications, but owing to a new regional category being introduced for 2025, there’s room for another offering.

Enter the Peugeot 208 Racing — the latest racing version of the Peugeot 208, obviously. Carrying the updated triple-claw front bumper design and new LED headlights reminiscent of the 9X8 Le Mans hypercar, the link to the brand’s flagship racer is clear. However, look past the white body panels, yellow accents and black graphics and you’ll see a car that has an even closer link to the five-door hatchback that you can buy from your local dealer today. In fact, the only obvious visual difference to be found is the set of white steel wheels that hark back to the famous 106 Rallye homologation special of the late 1990s.

Under the bonnet is the familiar 1.2-litre three-cylinder engine that is ubiquitous in the wider Stellantis model range, but here the turbocharged unit develops 143 bhp and drives the front wheels through a close-ratio six-speed manual gearbox. The standard-fit tyres are the Michelin Pilot Sport 5, chosen for their high grip and predictable handling. The car uses a competition electrical architecture with a race-specific ECU and data logger, allowing the driver and team to analyse telemetry following a special stage.

Inside, elements have been borrowed from cars in the Rally4 category such as the anti-glare dashboard, multi-page information display and quick-select buttons on the centre console. The car features a welded roll cage and fire extinguishers with three automatic triggering systems.

The car has been built to the FR6 regulations set out by the Fédération Française du Sport Automobile, and is aimed at drivers who are getting started in the world of rallying, be they experienced amateurs or young professionals. It is designed with low running costs in mind, hence the use of off-the-shelf suspension and braking components that are then optimised for racing. Budgets are aided by the use of E85 ethanol fuel which is significantly cheaper than racing petrol in France.

The 208 Racing is priced from €38,900 excluding VAT (approximately £33,000) with order books already open. The accessible price point combined with its focus on low running costs and safety sound great for a racing car, but it sounds even better for what it could be: a road-going hot hatch.

Manufacturers often cite increased manufacturing costs as a reason to discontinue low-volume performance models — especially in the small hatchback segment — meaning that the once flourishing segment has all but disappeared in recent years. However, the 208 Racing uses off-the-shelf parts throughout its chassis and drivetrain, and I can’t help but think that the ethos of accessibility, affordability and driving enjoyment would translate brilliantly into a road car.

The roll cage may be unnecessary for road use so a “208 Rallye” could be easy to integrate into the production lines that build the petrol and electric versions of the popular model. It can’t just be me who sees a space in the model range and the market for a race-bred hot hatchback at an affordable price. There are plenty of road car-based racers taking on the circuits and trails around the world, but none of them are screaming out to be turned into a production car more than the Peugeot 208 Racing.