Subaru's new Impreza WRX STI will be priced at £24,995 on-the-road, £1,600 less than the outgoing model.

First deliveries of the 2.5-litre 298bhp model are expected in March, with a higher spec model tuned by Prodrive to follow later in 2008.

The WRX STI's Top speed is 155.3mph with a 0-60 mph time of 4.8 seconds.

Colour choices include Subaru’s signature ‘WR blue’ and while gold-coloured alloy wheels are available, other designs include silver alloys with 245/40R tyres.

Standard equipment includes: Multi-mode driver control centre differential (DCCD), Subaru vehicle dynamics control system, ABS with EBD, Brembo brakes, cruise control, front, side and curtain airbags, 17x8 inch alloy wheels with 235/45 tyres, HID headlamps, Alcantara and leather front bucket seats, climate-control air-conditioning, six-disc in-dash CD autochanger and MPS input. Recaro seats are available as an option.

The DCCD is operated via a switch in the centre console, allowing the driver to manually select the torque distribution front to rear, reverting to automatic mode every time the ignition is switched off.

Drivers can choose between having a sharper cornering turn-in or more stable straight-line running. In manual mode, the driver can adjust the front to rear torque distribution through varying degrees to suit different road conditions such as loose gravel or soft snow.