This animal roars but is sure-footed on road

It's been a long wait, but Honda's British-built Civic Type R is back with a bang, setting new targets for rival 'hot hatchback' manufacturers.

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On paper, it's a bit of an animal: Honda has pushed the limits for front wheel drive power to a brutal 306bhp, making the new Type R the fastest of the breed around the Nurburgring - its time up there with supercars costing tens of thousands more.

Its four big bore tailpipes growl fiercely on the charge, but with a whole host of new technologies Honda has tamed the beast billed as 'a race car for the road.'

With a 0 to 62mph sprint time of 5.7 seconds and a top speed of 167mph performance is fearsome, but incredible handling, roadholding and powerful brakes make it feel almost benign and as comfortable on the city street as it is competent on the track.

Honda demonstrated their confidence in the £30,000 new car by trusting it to the hands of the world's motoring press at the testing Slovakiaring circuit – proving that while it's easy to unleash the beast and enjoy its thrills, it is also highly forgiving of clumsy hands. It was also the best way to appreciate exactly what happens when you press the big '+R' button on the dashboard.

Everything about the car – steering and engine response, damping and stability systems – go into race car mode and you can really feel the difference in the way it behaves.

The power and torque of the revolutionary new two litre engine is 'tamed' by an equally innovative new front suspension and drive shaft set-up which virtually eliminate torque steer – for so long the limiting factor in front wheel drive car performance.

Plus the Type R has new aerodynamic features and a four wheel 'adaptive damping' system to ensure maximum contact between the specially developed tyres and the road surface even under extreme driving.

The Type R's performance at the Nurburgring says much more than I can about its handling and roadholding: 12.9 miles of the infamously tough and twisting track in seven minutes, 50.63 seconds – the quickest lap ever by a front wheel drive car.

This is the raison d'etre of the Type R, the target set by Honda bosses, but to actually achieve it takes so much more than just turning up the power. Extra speed isn't much good if it won't hold the road and go around the corners.

Performance Honda devotees have been waiting five years for this new Type R and now we can perhaps understand why. This is no makeover of its predecessor, nor is it a tweaked version of a standard Civic.

The engine, for example, combines Honda's thrill-a-minute VTEC variable valve system with a turbocharger for the first time.

Power delivery feels, and sounds, very different. Gone is the sudden surge of acceleration and change in engine note as the VTEC system's second cams and high-lift valve operation came in and sent you screaming towards the 8,000rpm limit.

For the Type R the engineers have basically turned the system on its head, with the high valve lift phase occurring at low to medium revs to eliminate turbo lag and give you more grunt lower down. The result is smooth, accessible power right across the rev range.

I experienced the effect quite accidentally. While still getting to grips with the Type R's ultra short-shift gearbox on the circuit I found myself exiting a corner in fifth instead of third. And the car was still pulling like a train.

To ensure the Type R could safely handle the extra power, its aerodynamics were developed at the company's Formula One facility, with a shaped underside, new front 'splitter' and rear aerofoil which create a significant amount of downforce – especially at the front to improve steering accuracy.

The adaptive damping system works on all four wheels together or independently. For example under hard acceleration it stiffens up the rear dampers in milliseconds to prevent the front from going light, and vice versa under heavy braking. Its very effective during extreme cornering too, keeping the car flat and stable for optimum grip.

The Type R's natural responsiveness is boosted by a new 'agile handling assist' feature, working with the more familiar electronic stability control. In simple terms you get a more rapid steering response and 'turn-in' because it applies a light, imperceptible touch of brake to the inner wheel. Handy on the track, it's a potential lifesaver on the road if, for example, you have to suddenly make a sharp avoidance manoeuvre.

Th engineers also developed a new limited slip differential, balanced drive shafts and a unique 'dual axis' design for the front suspension which work together to improve traction and cut torque steer.

The Type R's brakes, with big 350mm drilled discs, are supplied by Brembo who have years of expertise in designing braking systems for Formula One. Their stopping power is progressive and convincing, helped by the adaptive damping system preventing front end dive and ensuring optimum tyre/road contact. It actually feels slightly odd – an emergency stop where there's no real sense of being thrown forward hard against the seatbelts.

The Type R has big racing seats which give driver and passenger plenty of lateral support, but they're also well padded and there are standard seatbelts (no harness which might be great on track but not exactly convenient for a trip to the shops).

The seats are set lower than a standard Civic seat which give you a low-slung 'in the cockpit' driving position. A fringe benefit is that it's also easier to get in and out over those big side bolsters.

You won't need to press the '+R' button out on the road as the Type R has more than enough performance and responsiveness in normal mode.

Inside, of course, you get all the features and practicality you'd expect of the Civic range's flagship, such as satnav, climate control and a sound system with Bluetooth, with added touches such as alloy pedals and gear shift.

Cruise control and a speed limiter, plus a 'city brake' system are also included in the £29,995 standard Type R package.

For anther £2,300 the GT version has an upgraded audio/satnav system and quite a variety of added extras.

In either case the basic statistics don't change. The official fuel average is pretty impressive at 38.7mpg which translates into a CO2 emissions figure of 170g/km (tax band H).

The insurance group is 33E and the car comes with Honda's three years or 90,000 miles warranty.

By John Griffiths