Value

Volkswagen: The original Golf GTI popularised the hot hatch theme 40 years ago, paving the way for the increasingly capable cars on sale today.

The GTI Performance model here is the most focused car ever to wear the Golf GTI badge, featuring more power, bigger brakes and a clever differential to separate it from regular models. Priced at $3000 more than a regular Golf GTI DSG - but $3500 less than its Peugeot rival - the Golf is loaded with 19-inch wheels, adaptive suspension, a dual-clutch automatic transmission, Bi-Xenon headlamps, LED tail lamps and a modern touchscreen infotainment system with Apple CarPlay and Android Auto.

Peugeot: If any brand can match Volkswagen's hot hatch heritage, it's Peugeot. The French marque has a back catalogue loaded with hits such as the 205 GTI and 306 GTi-6 that set budget performance benchmarks in their day. The new 308 is the best Peugeot in years, providing an excellent foundation for the 200kW GTi 270 tested here. With bigger wheels and brakes, a mechanical limited slip differential and sticky tyres separating it from the less powerful (and $5000 cheaper) GTi 250, the hero model here sits at the top of the 308 range. Standard kit includes lightweight 19-inch wheels, sports seats with partial suede trim, a large touchscreen with sat nav, entertainment apps and more.

It's a lot of car, but it doesn't offer much more than the Volkswagen for a significantly steeper price.

Winner: Volkswagen

Inside

Volkswagen: The Golf has long been a small-car benchmark for interior quality, a trait that remains the case here. The regular car's well-finished if plain cabin is improved by sports seats with a mix of Alcantara and retro "Clark" tartan cloth trim, as well as a nicely sculpted flat-bottom steering wheel with shift paddles, red stitching on key elements and black roof lining.

Volkswagen Golf GTI Performance and Peugeot 308 GTI 270. Photo: Drive

The Golf is a quieter, more comfortable place to be than the Peugeot, with more supportive seats and better ergonomics than its rival. Everything falls to hand nicely in the Volkswagen, which takes a conventional approach to interior layout.

Peugeot: The GTi has an oddball interior layout with high-set instrumentation and a tiny steering wheel that almost rests in the driver's lap. Peugeot says it's better for bloodflow during long drives, and it certainly does make the car feel a bit special. Like its rival, the GTi 270's cabin treatment includes partial suede sports seats and plenty of red stitching along with further splashes of red throughout the cabin. It's a more interesting place to be than the VW, though it's seats are less supportive during hard driving and there is noticeably more road noise in the French hatch - probably because of its more purposeful tyres. While more impressive at a glance than the VW, the Peugeot is not the car we would want to live with every day.

Winner: Volkswagen

Under the bonnet

Volkswagen: Both cars offer turbocharged four-cylinder engines that drive the front wheels, but the similarities stop there. The Volkswagen's larger and less powerful 2.0-litre unit offers flexible power in an instant - and it feels much stronger on the road than its 169kW output suggests.

Related Content Volkswagen Golf GTI Performance v Peugeot 308 GTi 270

That might be because of its standard "DSG" dual-clutch automatic transmission that changes gears far faster than a human could. It's a brilliant thing in terms of efficiency and performance, though it ultimately detracts from driver involvement. Volkswagen claims the GTI Performance can hit 100km/h in 6.4 seconds - not bad for a 1364kg hatchback.

Peugeot: Peugeot's compact 1.6-litre unit makes 200kW of grunt - quite a bit more than the VW in a package that weighs around 150kg less than its rival. Even so, it's just 0.4 seconds faster to 100km/h than the Golf, largely because Peugeot persists with a conventional manual transmission. That's great news for purists, as fewer and fewer performance cars offer a traditional three-pedal transmission. Peugeot's gearbox isn't a gem, thanks to a rubbery shift feel with long throws between ratios. But it is much more satisfying than popping the Volkswagen into drive.

The 308's engine offers a touch more turbo lag than the VW, and there are more pronounced turbo sound effects under the bonnet. The 308 is also more efficient than its rival, using less fuel thanks to its smaller engine and lower weight.

Winner: Peugeot

How it drives

Volkswagen: The Golf is a car with two characters. Content to hum along in traffic with the transmission in automatic mode and the compliant suspension set to comfort, it's an easy car to live with on a day-to-day basis.

Pilots can choose from a variety of preset driving modes - or set up an individual solution with the engine, transmission, steering, suspension, differential, stability control and more tailored to their liking - something we love to see in a modern performance car.

Set to its most aggressive, it becomes a potent performer armed with with launch control and a seriously clever front differential. While many front-wheel-drive cars struggle to get their power to the ground, the Golf puts all of its grunt to good use with an electronically-controlled, mechanically-locking differential that keeps everything tidy while maintaining an impressive turn of speed. It's a precise machine that uses modern technology to help drivers be as neat - and quick - as conditions allow. It's let down in this company by less focused Pirelli tyres that protest sooner than the Peugeot's rubber, as well as a slightly disconnected, digital feeling that lacks a degree of connection with the road.

Volkswagen Golf GTI Performance and Peugeot 308 GTI 270. Photo: Drive

Peugeot: This car has a simpler, singular personality. It's always up for trouble, keen for full-throttle acceleration and committed cornering. It doesn't handle bumps - or traffic - as well as the VW, but it's much more engaging to drive hard.

The Peugeot's conventional mechanical differential keeps drive flowing to both wheels, though it's more likely to run wide of a driver's preferred line, and to exhibit torque steer.

The 308 has a secret weapon on every corner, Michelin Pilot Super Sport tyres - the same as you'll find on a Ferrari 488 GTB or BMW M3 - that offer immense roadholding and driver confidence.

It doesn't flow along a road quite as nicely as the Golf, instead offering bursts of excitement under braking, acceleration and cornering that lend more adrenaline than its German rival. The Peugeot has a sports mode that sharpens its reflexes, but it can't be customised in the same way as the Golf.

Special mention must be made for the 308's front brakes - 380mm units with Alcon calipers that offer more stopping power than any hatchback ought to offer. The trade-off is that they are responsible for disconcerting noise and vibration, at least in our test example. Peugeot says it is looking into the issue.

Winner: Volkswagen

X-Factor

Volkswagen: The Golf GTI has been a safe bet for more than a decade. Combining comfort, performance and understated style in a refined package, it's a car that offers plenty of pull for car enthusiasts. This Performance model takes that a step further - though it's about to be superseded by a new GTI 40 Year special with even more power. It's also not the ultimate Golf - the all-wheel-drive Golf R wears that crown - and it's a fairly common sight on urban roads.

Peugeot: The 308 signals a return to form for Peugeot, which now combines its knack for design flair and eccentricity with genuine technical competence. This is the most focused Peugeot ever sold in Australia, a fact supported by its more striking styling, fruitier exhaust note and single-minded mission on the road. It's not as advanced as the Golf, but it certainly is more special.

Winner: Peugeot

Summary

Volkswagen: The consummate all-rounder continues to grow in ability and appeal. It's the complete package - particularly if you want to make the most of all technology can offer - and the better car here.

Peugeot: The GTi 270's narrow focus will cost it customers. Thankfully, Peugeot chose not to create a softer, more accommodating hot hatch. Buy this one if ultimate performance and analogue thrills represent your receipt for success.

Winner: Volkswagen



Volkswagen Golf GTI Performance

Price: $46,490 plus on-road costs

Engine: 2.0-litre four-cylinder turbo

Power: 169kW at 4700-6200rpm

Torque: 350Nm at 1500-4600rpm

Transmission: Six speed auto, front-wheel-drive

Fuel use: 6.6L/100km



Peugeot 308 GTi 270

Price: $49,990 plus on-road costs

Engine: 2.0-litre four-cylinder turbo

Power: 200kW at 6000rpm

Torque: 330Nm at 1900-5500rpm

Transmission: Six speed manual, front-wheel-drive

Fuel use: 6L/100km

Interested in buying Volkswagen Golf? Visit our Volkswagen showroom for more information.

Interested in buying Peugeot 308? Visit our Peugeot showroom for more information.