The little Peugeot 106 was introduced in 1991 as a replacement for both 104 and 205 models.
In 1996 it received an important update to extend its lifespan.

The French car-company Peugeot succeeded to build good, reliable cars in the small-segment. It showed interest in the motorsport as well, introducing the 106 GTI as a replacement for the older glory 205 GTI. The 106 was a car that was offered for the economy, for performance, or a middle road between them.

The 1996 model came with a nicer, rounded, exterior look. While at the beginning of the ’90s the angular lines were still en vogue, just five years later those were already history. So, the straight-cut front grille was reshaped with rounded corners. The headlights were modified as well. Even the tailgate and the taillights were adjusted according to the new design trend. But it wasn’t a rounded car. It was a slightly re-styled one.

Inside, the designers installed a new interior, with more updated features for the audio system. A passenger airbag was introduced to increase safety. It featured power-windows on the options list or fitted as standard depending on the trim level.

For the engine compartment, there were new fuel-injected units that replaced the older, carbureted ones. A new, 1.5-liter diesel engine was introduced as well. For the top version, 1.6-liter GTI, there was a special model with up to 118 hp. And that version was remarkable especially on the brakes, where it could stop faster and shorter than a same-period Porsche 911 Carrera.

The Peugeot 106 Rallye was a follow-up of the sporty XSi model.
The first was different from the XSi through its TU2 series 1.3 gasoline injection that could develop a max 100 bhp.

Specifically designed for the sporty driver, the Rallye was scarce with comfort implements, the only two features being available from the factory having been an ABS (Anti Break Locking System) and a sunroof. However, some of the elements previously encountered on the XSi were kept on the Rallye as well, such as the foglights and spoilers. Still, it didn’t have alloy wheels, central locking or electrically-operated windows.

In 1991, Peugeot needed a car to replace two of its vehicles the 205.
After a successful career on the market and the race-tracks, it was a very difficult job. But it had to be done.

When the research for the new model started, the French group started from scratch. All they knew was that the car will have to be a light hatchback with a front-wheel-drive. After putting the bits and pieces together, the design team finished a bodywork that looks good for the market-segment and spacious enough for a young family, with or without children. It was built in 3- and 5-door version. It had to have something for everyone.

The car’s shape was simple and with rounded edges, it clearly left the ’80s design influences. Its slimmer headlights and the small gap in the grille were a new trend and it was appreciated by its customers.

Inside, the car offered enough room for four adults, regardless if it was in three or five-door configuration. The trunk was not big, but since the rear bench was foldable, that problem was solved. The straight and simple dashboard featured a small center stack for the stereo and the ventilation controls.

The car started its career with a small, 1.1-liter engine with a carburetor, which was replaced later on due to stricter pollution emissions. Over time, it received a choice of engines ranged from 50 hp to 95 hp. A three-door version with a GTI badge on it was introduced after the 1996 facelift.