Aiming at those looking to race in the lower formulas of rally, Peugeot has introduced the first competition version of its new 208 supermini.

The new 208 R2 was developed for the popular R2 rally category and features a raft of upgrades over the regular model.

These include the driveline that combines a 1.6-liter naturally aspirated four-cylinder engine tuned to deliver 185hp at 7,800rpm, linked to a five-speed, manual, sequential gearbox with the lever mounted on the steering column.

Peugeot’s engineers also made changes to the suspension, the brakes and switched the standard car’s electric power steering to a hydraulic unit, while the car rides on specially developed racing tires from Michelin.

“With the 208, Peugeot has given itself the means to create a new motoring icon,” noted Peugeot’s Range Director Laurent Blanchet during the R2 model’s launch.

“The 208 carries over the spirit of the 205 and the 206, plus the functionality of the 207 in a thoroughly modern package,” added Xavier Peugeot, the brand’s Product Director.

The 208 R2 will make its first public appearance in full racing livery when it serves as ‘zero’ car for next week’s Tour de Corse (May 10-12), the fourth round of the 2012 Intercontinental Rallye Challenge.

Peugeot said that the gravel and asphalt versions of the 208 R2 will both be available in kit form including the engine with prices starting at €37,500 (US$49,500) as well as in fully built form for €57,500 (US$76,000).

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