1994 Peugeot 106 Rallye

Highlights

• Remarkable, original 106 Rallye in Rare Cherry Red

• Homologation-developed engine

• Last owner for 20 years

• All old MOTs and lots of invoices

• Available for viewing on the PistonHeads Auctions stand at the Annual Service event at Bicester

Overview

At first glance, Peugeot 106’s supermini might not be the most obvious car to appear on Pistonheads Auctions, but this is no ordinary 106. This is a car developed purely for motorsport homologation, and the fact it looks agonisingly cool is pure happenstance. 

Besides, the baby Peugeot was one of the best small cars on the market back in the day, blessed with a magical little chassis and stacks of character. 

It’s no surprise, then, that Peugeot wanted to take it rallying, but in order to do so, and to qualify for the sub-1.3-litre Group N class, a homologation model was needed, which had to be built in sufficient volume to be seen as a production model. That led to Peugeot creating 1,000 106 Rallyes globally. 

The model was based on the ‘sports’ chassis set up found on the 106 XSi and was built very much with weight saving in mind, so luxuries were thin on the ground. No power steering, no electric windows and certainly no air con, although concessions were made for sports seats and a radio (though this could be deleted if you chose). In total, it weighed just 825kg.

But the real party trick lay under the bonnet. To get around homologation rules, the XSi’s 1.4-litre engine was shrunk in the wash, coming down from 1,360cc to 1,292cc, but with an alloy block and head and bigger valves. It developed 100bhp, which gave it a 0-60 time of 8.8 seconds. That may not sound all THAT quick, but until you’ve driven one and realised just how quickly you can hustle it along, the way in which it changes gears, and how it holds onto its revs until 7,800rpm, then you’ll never realise just how great a car it is. 

There were three colours offered at launch in 1993 – white, black and red, each with the iconic Peugeot-Talbot motorsport stripes subtly adorning the lower body. 

This one is Cherry Red, and has been part of the vendor’s life for the last twenty years. Yes, he’s owned it since 2005, and prior to that the car belonged to his brother-in-law since 2001, so there’s provenance aplenty, backed up by invoices and old MOTs. The only thing that’s non-original is the paint, because – as with many red cars – the original finish gave up the fight, leading to the car being treated to a high-quality respray a few years back. It’s now utterly gorgeous, and you’ll struggle to find a better one. 

History and documentation

• First registered in the UK on 27 May 1994 by Caledonia Peugeot in Lichfield, Staffs

• UK V5C in the current owner’s name

• MOT until 15 April, 2026 – passed with no advisory notices

• Current owner since May 2005

• Two sets of keys

• Factory immobiliser

• Original handbook and Peugeot books, no folder

• Service book stamped 10 times in car’s early life

• Large file of invoices documenting regular early maintenance; has been cared for by the owner since

• After market alarm fitted but disconnected around 20 years ago as not used; remotes included with the keys

• Old MOT certificates back to 1998

Interior

• Original sports seats in great order

• Very slight rub on driver’s seat piping

• Red carpets in good condition, with some wear to the driver’s side heel pad

• Electric windows specified as original option

• Excellent door cards and headlining

• Aftermarket CD player

• Red seatbelts

• Tidy luggage area with original tools

Exterior

• Lovely Cherry Red paint

• Full respray carried out by Autoclenz Body Repair in Oldbury, W Mids, and featured on their Instagram page

• Great finish and overall condition

• One tiny scuff on rear bumper

• Crack in plastic scuttle cover as seen under tax disc

• Black bumper trim has swelled slightly on one side

• Originally white steel wheels in lovely condition

• Reproduction Rallye graphics

• Excellent Toyo Proxes tyres all-round

• Underside reported to be in very good order 

• Strut tops and boot floor appear to be in sound condition

 

Mechanical

• 1.3-litre ‘TUJ2U’ alloy engine

• 100bhp

• 0-60 in 8.8 sec/133mph top speed

• Five-speed manual transmission

• Close-ratio gearbox

• Last serviced at 91,484 miles in May 2025

• Cambelt last changed at 89,396 miles in 2016

• K&N air filter and original Rallye airbox

• Recent new parts including front brakes pads, catalytic converter, spark plugs, gearbox oil, fuel filter, air filter, engine oil and filter

• The vendor reports that the car usually starts on the second turn of the key and thereafter runs well

Summary

Peugeot’s pocket rocket comes from an impressive lineage of small and lively cars, and this one is an absolute gem. 

Beautifully original, presented in stunning condition and as fun-to-drive as the 106 Rallye always was and will be, this one’s an absolute gem of a car. But don’t take our word for it – instead, come and see it for yourself at the Pistonheads Sunday Service at Bicester Motion on August 9.

To arrange a viewing, click the 'Book Viewing' button located under the 'Place Bid' button. Viewings can be booked up until the day before the auction ends, after which the option will change to 'Contact Seller' for further enquiries. This seller is located in Sutton Coldfield, W Mids.