Peugeot set to unveil its hot new mini

Hero model of the 205s, the sweet wide-bodied T-16, was built for rally homologation. Photo / Supplied

Peugeot is set to take on the small-and-scary market leaders with a white-hot hatch reminiscent of its famed 205 GTi.

In just over a month, the French company is expected to take the wraps off the new 208 - considered the most important Peugeot to be announced this year.

Just what the new 208 will look like is a well-guarded secret, but it is understood that Peugeot has drawn inspiration from its SR-1 and HR-1 concept.

It will face off with other minis like the, er, Mini, as well as Ford's Fiesta and the upcoming refresh of the Renault Clio.

Following Pug tradition, there will be a "sporty" three-door hatch, which will be teamed with a five-door and, eventually, a coupe and possibly even an SUV version.

Sources label the sporty three-door a "spiritual successor" to the 205 GTi, but this is a label bandied about with monotonous regularity in the automotive industry - if it is accurate, it's a surefire winner.

There'll be a solid range of engines on offer, but some reports indicate that the go-fast version will be powered by the same 157kW 1600cc turbo four-cylinder as found in the slick RCZ.

Although tipped to be the smallest, gruntiest Peugeot ever offered, the new 208 will also include an iPad-like removable touchscreen for storing maps and media content.