Peugeot has introduced its first competition version of its new 208 supermini. The new 208 R2 was developed for the R2 rally category and has a whole bunch of feature upgrades over the regular model.

The upgrades include combining 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.

“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.