Model tested: Peugeot RCZ THP 156 GT
Price: £22,750
Date tested: June 2010
Road tester: Andy Goodwin

The Peugeot RCZ is the company's first sports coupe, and it looks incredible, standing out even more in the metal than in the pictures. With curved roof arches and a double-bubble rear window it turns as many heads as a sports car costing twice the price.

But, Peugeot will sell you an RCZ for just £20,450, and even the most-expensive 1.6 THP 200 GT model is £25,050. There are three engine choices; a turbocharged 1.6-litre petrol with either 156 or 200bhp or a 163bhp 2-litre diesel.

The predominance of a small petrol engine in Peugeot's sportiest car might seem strange, but its twin-scroll turbo provides excellent response and plenty of power, while remaining refined and economical. Both versions emit less than 160g/km of CO2 and manage around 43mpg.

We tested the 156bhp version, which reaches 62mph in 8.3 seconds (200bhp model 7.6 seconds, diesel model 8.2 seconds) and feels plenty quick enough. But the 200bhp model is likely to keep owners entertained for longer, and it gives the RCZ the speed to match its looks.

With fuel consumption of around 48mpg the diesel will appeal to high-mileage drivers, or those who like the low-down torque of powerful diesel engines. A hybrid version is expected in 2012, using the same diesel engine and a 39bhp electric motor to achieve 76.3mpg while emitting only 95g/km of CO2.

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Fitted with stunning 19-inch alloy wheels (standard with GT spec, 18-inch wheels fitted with Sport spec) it's hardly surprising we never struggled for grip on our twisting test route.

An active rear spoiler deploys at 53mph and retracts at 34mph. Above 96mph the spoiler changes its angle of attack for maximum stability; drivers can also raise the spoiler manually.

Inside, the amount of equipment is very impressive, while new dials and a central analogue clock mark out this car from its 308 hatchback cousin.

In Sport trim the RCZ gets cloth seats, dual-zone air-con, rear parking sensors, active rear spoiler and 18-inch alloy wheels as standard. More luxurious is the GT spec, with leather upholstery, electric and heated front seats, front parking sensors and auto lights and wipers.

Described by Peugeot as a 2+2 with "occasional rear seats", the rear bench is really only suitable for kids, hand baggage or adults over very short distances. Headroom and legroom in the back are both limited. An impressive amount of space is available in the boot, however, with 384 litres in normal use and 760 litres when the rear seats are folded down.

Peugeot performance cars have been in the doldrums recently, but the RCZ is something of a revelation. Is it good enough to tempt buyers away from the Audi and Volkswagen? On the strength of its dynamic abilities alone, probably not. But its looks, equipment and practicality should attract many buyers after something a bit different.