Winding Road reports Mazda are all but finished working on a top of the range turbo-charged Mazda2. The Mazda2 MPS will be based on the new generation Mazda2 landing in Australia come October.

Powered by a turbocharged four-cylinder 2.0-litre engine, the new hot hatch is expected to take on Mitsubishi's Ralliart Colt and the new Ford Fiesta XR4. The Mazda2 MPS is expected to have over 160kWs of power and sprint from 0-100km/hr in around 6 and abit seconds.

The Mazda2 MPS will ride on 17" alloys while power goes through the front wheels coupled to a six-speed manual gearbox. Given its FWD setup, Mazda are likely to include a limited slip differential (LSD), traction and dynamic stability control as standard.

Having raided Ford's parts bin, the Mazda 2 MPS may also feature Volvo sourced 320mm front brake discs.

We hold high hopes that Mazda Australia will the hot hatch here. We expect the Mazda 2 MPS to retail for around $28-29,000 AUD.