The Melbourne-based team has been tasked with designing, developing, and homologating the new four-door hatchback racer.

As a road car, the 308 comes in 1.2-litre and 1.6-litre variations. The racing machine carries the 1.6-litre turbocharged engine, which is new for the second-generation 308 TCR.

Kelly Racing owner Todd Kelly has been instrumental in the development of the engine for the Peugeot 308 TCR, according to Garry Rogers Motorsport engine builder Jeff ‘Gypsy’ Marshall.

“We’ve done probably about 10 days of running on his dyno and we’ve tuned the engine and we’ve got to a level that we think is quite safe for reliability and makes quite good power,” said Marshall.

Marshall will soon head to Modena in Italy where the engine will continue its testing program before being ratified by TCR rights distributor WSC Sports.

“We’ll be there for four days,” he explained.

“The first day is putting the engine on the dyno and then three days of running the engine and hopefully meeting the homologation targets.

The team is remaining tight-lipped on when the hatchback racer will make its competitive debut.

At the moment, the team has four cars being built.

Pending homologation, the new car could race as soon as Sydney Motorsport Park at the upcoming SpeedSeries event on October 18-20.