The Peugeot 106 was far more than a cheap small hatchback. Across two body phases it became an economical first car, an unusually engaging sporting platform, a successful rally machine and even an early production electric vehicle. This evergreen guide explains the ordinary range as well as the XSi, Rallye and GTI.
Peugeot 106 history
The 106 arrived as Peugeot’s entry-level model below the 205. It was compact without being crude: light weight, excellent visibility and carefully judged suspension made even modest versions pleasant to drive. Official Peugeot heritage material dates the model’s introduction to 1991 and its production life to 2003.
Although it shared parts and engineering ideas with other small PSA cars, the 106 developed its own identity. Three- and five-door bodies were offered, engines ranged from basic petrol units and durable diesels to lively fuel-injected performance versions, and trim levels varied substantially by market.
Phase 1 and Phase 2 explained
Phase 1: 1991–1996
The original 106 has the slimmer bumpers, squarer lamps and delicate styling many enthusiasts now prefer. This generation introduced the XSi and Series 1 Rallye.
Phase 2: 1996–2003
The facelift brought a rounder nose, larger lamps, revised bumpers and a modernised interior. It also provided the basis for the 106 GTI and Series 2 Rallye.
The facelift was more than cosmetic. Equipment, engines, trim and safety provision evolved, so parts should not be assumed interchangeable simply because both cars carry a 106 badge.
Mainstream Peugeot 106 models
The ordinary 106 range is the foundation of the story. Small-capacity petrol cars prioritised economy and low insurance costs; diesel versions became exceptionally economical commuters; later special editions added colour, trim and equipment rather than performance. Survivors deserve attention because basic cars were used hard and rarely preserved.
The range also included the factory 106 Electric. Produced long before battery cars became normal, it used PSA’s period electric-drive technology and nickel-cadmium batteries. It is historically important, technically specialised and very different to own from a petrol 106.
Peugeot 106 XSi
The XSi arrived early in the model’s life and was the first clear sporting 106. Official Peugeot material records a 1.4-litre injected version at roughly 95–98hp before a 1.6-litre derivative of about 103–105hp appeared. Figures vary slightly with market, emissions equipment and source, so a car should be identified by its engine code and original-market documentation.
The XSi mixed performance with more everyday equipment than the Rallye. It is therefore not merely a softer Rallye: it occupies its own place in the range and is increasingly scarce in unmodified condition.
Peugeot 106 Rallye Series 1
Production of the first Rallye began in 1993. The Series 1 used the 1,294cc TU2J2 engine, close gearing and a deliberately sparse specification. Peugeot’s period technical material quotes 98hp, an 810kg kerb weight and 0–100km/h in 9.3 seconds, although published figures can vary by market and test method.
Its character came from subtraction. Electric windows and mirrors, central face-level vents and other convenience items were omitted. White 14-inch steel wheels, squared arch extensions, red carpet and belts, Rallye graphics and supportive seats gave the car a clear identity without making it luxurious.
Peugeot 106 Rallye Series 2
The Series 2 adopted the facelifted shell. UK examples are associated with a 1.6-litre eight-valve engine rather than the Series 1’s high-revving 1.3. It retained the basic Rallye philosophy but offered a broader, more flexible delivery and a slightly more mature driving experience.
A Series 2 is not simply a facelifted Series 1. The engine, body, trim and driving character differ, and collectors increasingly treat them as related but separate models.
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Peugeot 106 GTI
Introduced in 1996, the GTI sat at the top of the road-car range. Peugeot’s official retrospective gives the 1.6-litre 16-valve engine as 118hp and 145Nm, with 0–62mph in 7.4 seconds and a 127mph maximum speed. Continental markets commonly used the S16 name for the same sporting flagship.
The GTI combined stronger performance with broader everyday usability than the Rallye. Power steering, improved equipment and a more finished cabin made it easier to live with, yet its compact dimensions and low mass preserved the sharp responses for which the 106 became famous.
The page’s new featured photograph shows a standard 2002 106 GTI at Bicester Heritage. Photograph by Calreyn88, Wikimedia Commons, CC BY-SA 4.0.
Interior and driving position
The 106 cabin is narrow, upright and simple. Sports models gained better seats, distinctive trim and instrumentation, but the basic dashboard architecture remained recognisably that of an inexpensive supermini. Tall drivers should check seating position and pedal alignment before buying; comfort is personal and modifications can make matters worse.
What is a Peugeot 106 like to drive?
A good 106 feels light rather than flimsy. Modest dimensions, clear steering and a supple chassis make it easy to place, while performance versions add urgency without requiring enormous speeds. The Series 1 Rallye is the rawest, the Series 2 Rallye is more flexible, the XSi balances pace with usability and the GTI is the fastest and most complete road car.
Tyres, ride height and rear-beam condition strongly affect the experience. Extreme lowering, unsuitable wheel offsets or tired dampers can destroy the balance that made the standard car appealing.
Common Peugeot 106 problems
Corrosion and previous repairs
Inspect sills, jacking points, floor edges, rear arches, boot floor, front inner wings and suspension mounting areas. Lift carpets where practical. Fresh paint, underseal or body kits can conceal previous corrosion or accident repairs.
Rear axle and suspension
Worn rear-beam bearings are a well-known PSA small-car issue. Rear wheels leaning inward, uneven tyre wear, knocking or a poor ride demand investigation. A properly rebuilt beam with documented work is a benefit.
Engine, cooling and timing belt
Start from cold, check for smoke and listen for persistent top-end or bottom-end noise. Confirm fan operation, coolant condition and evidence of overheating. Demand dated timing-belt and water-pump evidence rather than relying on appearance.
Gearbox, driveshafts and brakes
Test every gear under load and on the overrun. Listen for bearing noise and driveshaft clicks, assess clutch bite and check that the car brakes straight. Competition use and hard road driving accelerate wear.
Identity and modifications
Rallye and GTI shells have often been modified, reshelled or fitted with later engines. Check the VIN against registration and history records. Decals, wheels and seats alone do not prove a car’s identity.
Peugeot 106 buying checklist
- Confirm the VIN, engine type, registration history and original market.
- Inspect the complete shell from above and below.
- Check rear-wheel camber and rear-beam documentation.
- Verify timing-belt, cooling-system and fluid maintenance.
- Assess gearbox, clutch, driveshafts, brakes and tyres on a proper test drive.
- Identify every modification and ask for invoices.
- Price scarce trim, seats, wheels and badges before buying an incomplete car.
Frequently asked questions
When was the Peugeot 106 produced?
Peugeot introduced it in 1991 and production continued until 2003.
What is the difference between a 106 XSi and Rallye?
The XSi was a more conventionally equipped sporting model. The Rallye deliberately removed equipment, used distinctive trim and prioritised low weight and competition-inspired character.
Is every Peugeot 106 Rallye a 1.3?
No. The Series 1 is associated with the 1.3-litre TU2J2, while the later Series 2 used a 1.6-litre eight-valve engine in the UK.
Is the 106 GTI the same as the S16?
They are market names for the 1.6-litre 16-valve sporting flagship, although equipment and specification can vary by country.
Did Peugeot build an electric 106?
Yes. The factory 106 Electric was an important early production battery vehicle using period PSA electric-drive technology.
Research note: production dates, sporting-model chronology and factory performance figures were checked against Peugeot/Stellantis heritage releases and L’Aventure Peugeot material. Specifications varied by year and market; verify an individual car from its VIN and original documentation.
For more about this car, read 10 Things You Probably Didn’t Know About the Peugeot 106 Rallye and GTI.