Peugeot hot-hatch return ruled out – for now

French car-maker Peugeot has poured cold water on plans to return to the hot-hatch market, with petrol, plug-in hybrid or electric power.

Peugeot discontinued its last hot hatch in 2020 – the 308 GTi – and turned its focus to a new badge, Peugeot Sport Engineered (PSE), planned to spawn new hybrid and electric performance cars starting with a version of the large 508 sedan and wagon.

However despite reports in 2020 claiming plans for a new 308 PSE with plug-in hybrid power, the PSE badge has not expanded to any other road cars.

The boss of Peugeot says that will remain the case for the foreseeable future – scuppering the chances of a new Peugeot hot hatch – as it focuses on volume-selling, 'regular' electric cars.

"Right now, we’ve stopped at the 508," Peugeot CEO Linda Jackson told the UK's Top Gear, when asked about plans for more Peugeot Sport Engineered models.

"It gives us the ability to have a flagship and be able to make the link [between road and racing, as Peugeot races at Le Mans with a hybrid hypercar].

"Who knows what might happen in the future, but right now to be honest with you my biggest priority is to launch electric vehicles. I never say no to the future, but that’s my focus right now," Ms Jackson told the UK outlet.

Despite the focus on electric vehicles, the Peugeot executive there are currently "no plans" for a high-performance PSE model with electric propulsion.

"I’m not promising yes and I’m not promising no. But we have to see where it goes. Right now, I need to make sure that I prioritise where my volume and profit opportunities are because this is all about that business, and let’s be honest 508 PSE is a great image-maker, but it’s a limited segment. We have to find the right opportunities.

"Who knows what will happen, but there’s no doubt if we were to do something in the future it would obviously have to be integrated into our electrification strategy. But we have no plans at the moment."

The final Peugeot hot hatchbacks – the 208 GTi axed in 2018, and the 308 GTi axed in 2020, continuing the lineage of the GTi name that debuted on the 205 GTi in the 1980s – used 1.6-litre turbocharged four-cylinder engines with six-speed manual transmissions.

Meanwhile, the Peugeot 508 'Sport Engineered' – which is not sold in Australia – mixes a 1.6-litre turbo-petrol engine with two electric motors, all-wheel drive and a 11.5kWh battery for a system output of 265kW.

There were reports in 2020 of plans for an all-wheel-drive 220kW PSE version of the new Peugeot 308, but they never eventuated.