The smart new RCZ coupe marks a new beginning for Peugeot cars after a pretty lacklustre decade. As such, it is also the first vehicle to benefit from the latest Peugeot lion brand identity.

This low-slung sportster holds a unique position in the Peugeot range, an issue denoted by the fact that it is the only car that does not use the company's numbering system with a central or double zero. Peugeot says the RCZ is designed to be an exclusive vehicle, something special, exuding a real air of excitement. The company promises that it will be followed by other bespoke models in the years to come, all distinctive, building on a strong personality and high levels of motoring enjoyment.

The RCZ is based on a concept car which was unveiled at the Frankfurt Motor Show in September 2007. Such was the public acclaim for the new design, that Peugeot quickly confirmed it would go into production as soon as possible.

However, there was no question of building the RCZ on a unique platform; the likely sales would not justify such a huge financial investment. So the production RCZ is based on the same platform as the 308 hatchback.

Despite the compromises this forced upon the designers, the RCZ has made the transition from concept to reality remarkably unscathed. Peugeot also set itself ambitious targets in terms of driveability and production quality and it had to be done in a very short time span. As a result, the company has opted to outsource production of the car to a specialist small volume vehicle manufacturer, Magna Steyr in Austria.

It certainly looks the part. Indeed, the RCZ is one of those cars that looks good from just about any angle. Critics claim its profile has been influenced by the Audi TT but, as the TT was one of the most successful coupes of the last decade, who can blame Peugeot? Anyway, the RCZ has plenty of unique features, most notably the double–bubble roof and rear windscreen and the two aluminium roof arches sweeping from front to back. Visually, the windscreen, black roof and dark tinted rear windscreen create a sense of continuity and the wide aluminium bonnet, which includes the front wings, emphasises the RCZ's width and closeness to the ground.

There are more subtle stylistic tweaks, too, such as the active rear spoiler which deploys in two positions, according to the speed of the car, improving fuel consumption and roadholding. The spoiler deploys in its first position at more than 34 mph while the second position is activated at speeds in excess of 96 mph. Drivers can choose to activate the rear spoiler manually by pressing a button on the centre console.

Inside, the sports bucket seats have been mounted lower to give a sporty driving position; the THP 200 model features a standard "sport pack" which includes a smaller steering wheel and a shorter gearlever. The background of the instrument panel dials are manufactured from pressed metal with photo etched fonts and subtle backlighting.

However, Peugeot's claims that the RCZ is a full four–seater are seriously wide of the margin. My daughter, who is only two years old, complained that she didn't have enough legroom – and she wasn't lying. The only way an adult could travel in the back would be if their legs were turned sideways, a position that would become uncomfortable after a very short space of time. Peugeot would have been better served had it made the RCZ a two–seater and used the rear seat area as a deep parcel shelf.

The company has gone to some lengths to make the THP 200 a refined car as well as a sporty drive. Its "sound system" technology makes it possible to deliver different harmonics according to the rate of acceleration. Like a real musical instrument, a vibrating membrane is activated shortly after driving off. It controls and amplifies the sound that is produced by an acoustic chamber which makes the engine sound sportier and more exciting. It works too, the RCZ sounds rorty when you’ve got your foot down, but calm and collected when you just want to relax into the drive.

Those aluminium A pillars are a pain at road junctions, though. They create a huge blindspot and I often had to crane my head forward to be certain the road was clear.

The 1.6 litre THP is the new high-performance engine in the RCZ range. It combines, in a world first, a twin scroll turbocharger for excellent performance and instantaneous response, with direct petrol injection for good fuel consumption and a variable inlet valve lift system which boosts torque and CO2 emissions. Fitted with this engine the RCZ certainly has the go to back up its show.

Peugeot has also made improvements to the front suspension, fitting increased diameter front hubs, lifted from the larger and heavier 407, and a lower bracing bar. Despite the relatively simple rear torsion beam the RCZ is the best handling Peugeot for some considerable time. There is precious little body roll and plenty of grip from the wide low-profile tyres. The power assisted rack and pinion steering is controlled by a electro-hydraulic pump unit which varies according to vehicle speed, speed of rotation of the steering wheel and the temperature of the power steering fluid itself. Peugeot claims this allows the system to continuously adapt the power supplied and is especially useful at high speeds where less assistance is desirable. The chunky leather-covered wheel feels good in the hand. It works, too. The RCZ is an enjoyable steer at all speeds. The body really hugs the road and the torquey motor really flings the car up the road. Believe me, the RCZ is no piece of mutton dressed as lamb.

To ensure the RCZ stops as well as it goes, the car is equipped with large diameter ventilated front discs (larger and thicker on the THP 200) and intelligent traction control. Several electronic driver aids – dynamic stability control, electronic brake force distribution and emergency brake assist – can be disconnected simultaneously to allow experienced drivers to fully enjoy the RCZ's capabilities on, for instance, a race track.

The hill assist function, which holds the vehicle on a gradient for two seconds after the break pedal has been released, is handy when you are in a hurry.

Peugeot has turned to audio specialists JBL for the RCZ's premium hi-fi system. It employs two medium hi-fi tweeters in the fascia panel, two hi-fi woofers in the front doors, two large hi-fi speakers in the rear panels and a powerful eight–track 240 watt digital hi-fi amplifier located in the boot. With that lot deployed it’s as powerful as the engine.

In keeping with its premium aspirations, the RCZ offers a large degree of new owner personalisation including three different types of body decals, black brake calipers, black door mirrors, a carbon double bubble roof panel with satin or brilliant finishes and various types of alloy wheels.

The RCZ is a safe car, too. At the front, the structure incorporates a triple absorbtion system to cushion impacts and an active bonnet system raises the bonnet by up to 55 mm in the event of a collision with a pedestrian. In addition, there are two adaptive front airbags, two side airbags to protect the chest and pelvis of front passengers and three-point seatbelt with force limiters.

Who’d have thought a couple of years ago that Peugeot would be challenging Audi for class coupe honours? The RCZ is a game-changer for the French company and, if the THP 200 is any indicator, a bright new future beckons.

Spec check: Price from £21,210 to £29,995 Engine: 1,598cc/ twin scroll turbocharged, direct fuel injection Power: 200PS @ 5,800 rpm Torque: 206 lb/ft @ 1,770 rpm Top speed: 146 mph 0 – 62 mph: 7.6 seconds Average fuel consumption: 33.2mpg on test (42.1 mpg claimed combined) CO2 emissions: 155 g/km YOU MAY ALSO LIKE: Audi TT: The TT's iconic looks have aged well and it still offers a very good drive. However, you will win no prizes for exclusivity.

Hyundai Veloster: Looks a bit plain stacked up against the Peugeot and Hyundai’s image still needs work in the performance car arena. More roomy but not as “special”.

MINI Coupe: Odd reverse-baseball-cap roof means the MINI’s a car you’ll either love or hate. Compromised interior means there’s no more room than in the RCZ.