The Peugeot 208 GTi will cost from 18,895 when it goes on sale this spring.
The three-door hot hatch is powered by a 200bhp 1.6-litre petrol engine, and can complete the 0-62mph dash in just 6.8 seconds. Despite the impressive acceleration, CO2 emissions are just 139g/km, which means average economy should be around 47mpg.
Exterior enhancements include bespoke 17-inch alloys, a body-coloured rear spoiler, LED daylight running lights, red front and rear brake calipers, and twin chrome exhaust tailpipes.
Inside, a DAB radio, half-leather sports seats, aluminium pedals and red trim details complete the look.
The 208 GTi will be available in six colours: white, black, blue, silver, grey, and a red that's exclusive to the GTi.
The new hot hatch will be a rival for cars such as the Mini Cooper S, Renault Clio Renaultsport and Volkswagen Polo GTI. Although Peugeot is launching the 208 GTi in three-door form only, it hasn't ruled out a five-door version at a later date.
Buyers can order the 208 GTi from March 1, with the first deliveries on April 18.