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» Introduction to the Series 2 Rallye

Peugeot official press release photo 9th Oct 97 & Brochure Cover

The Peugeot 106 Rallye Series 2 was produced as a homologation special edition model and consequently only limited numbers were manufactured to satisfy international motorsport regulations. Production of the second Rallye model began in March 1996 at Peugeots factory in Aulnay, France and it ceased in October 2000 to make way for the production of the Rallye 16v model sold in several countries. 

Originally Peugeot never intended to release the Series 2 model in the UK, although after pressure from the UK consumer market approximately 500 right hand drive models were imported from France, available in Bianca White and Indigo Blue. It was launched in the UK at the London Motor Show in October 1997. From that time onwards, it was officially sold for a price tag of £9895 for only one year by Peugeot dealers up until the end of 1998 with the last Rallye being registered in January 1999. The S2 Rallye 16v was never sold in the UK but a few models have been imported privately.
It instantly became the most exclusive performance 106 model ever launched by Peugeot in the UK, as there are 1081 S1 RALLYES, 5201 XSi 1400cc, 796 XSi 1600cc and 5468 GTi models registered (DVLA 2002). There are currently only 2 black LHD RALLYES registered in the UK (2002).

Bianca White, Indigo Blue and Black Series 2 Rallye's

It was quite clear from the development of the Rallye that Peugeot intended this car for the true driving enthusiast. Based on the fundamentals of the 106 GTi, the Rallye as of course had the frills replaced with the thrills. Just like the 106 Rallye Series 1 before it, the Series 2 version has little use for luxuries - just the bare essentials!

'Hit the gas and the Rallye zooms off at a blistering pace no matter which gear you're in'

TopGear, 1998
Engine & Gearbox

The Rallye is fitted with a high performance TU5J2 1587cc 8v engine that is a slightly more tuned version of the earlier 106 1.6 XSi engine also fitted to some Peugeot 306 models. This engine is unique to the Rallye and is not fitted to any other Peugeot model. It produces 103bhp at 6200rpm and gives 97lbs/ft of torque at 3500rpm.

It provides immense power and effective torque up to 7,000 rpm - giving endless acceleration through the gears. Although the S2 engine is not as high revving as the one used in the S1 Rallye, it is much more flexible and produces raw performance characteristics that none of its rivals can match. A high power to weight ratio of 119bhp/tonne helps give a top speed of 121mph, 8.5 sec 0-60mph, and fantastic mid range figures.

The Rallye is fitted with a MA 5-speed gearbox, the same as the one used in the 1.6 XSi. It shares the same gear ratio's as the S1 Rallye gearbox but different crown and pinion wheels give the S2 a final drive ratio of 4.06. The gearing specification allows the Rallye to reach 62mph in 2nd gear and 116mph in 4th when standard size wheels and tyres are fitted.

'It could teach expensive sports cars a trick or ten about handling'

Auto Express, 1998

Suspension & Brakes

The highly successful suspension layout of the S1 Rallye has been tweaked by Peugeot for use on the S2 Rallye. The front design is very similar using the same size 22mm anti-roll bar, the only difference being a new drop link upper fixing point on the strut casing. The Rallye and GTi have identical front and rear suspension.

Rallyes with the power steering option have slightly different drive shafts, hubs and top mount position.

The rear suspension has been uprated by fitting a larger 24mm anti-roll bar whilst the torsion bar size stays the same as the S1 at 19mm.

The front braking system has changed from the Bendix calipers used on the S1 to ATE calipers on the S2. The calipers are very similar and still use 247mm ventilated discs.

The major change on the rear is the disc brakes fitted to the S2 Rallye. It is fitted with the same rear disc set up as a lot of other Peugeot and Citroen performance models such as the 205 GTi, 306 Rallye and Xsara VTS.

'B roads are the Rallye's natural habitat'

Cars & Car Conversions, 1998

Bodywork & Exterior

Looking every inch the part with its exciting shape, Peugeot Sport livery and white steel wheels the Rallye really does stand out from the crowd. Easily distinguished from any other 106 model as the Rallyes exterior has more purpose and character. Available in three door only and coloured in either Indigo Blue or Bianca White in the UK, the Rallyes exterior helps make it such an intoxicating car on the road. In Europe and some other countries, the Rallye was also available in black, red, silver and yellow.

Front bumper, side skirts and arches, rear bumper

The Rallye shares the same body kit design as the 106 GTi and Quiksilver but with a few subtle differences. The front and rear bumpers are fully painted to match the body colour where as the GTi has black plastic rubbing strips on the bumpers. The front spot lights have replaced with small circle grilles that can be removed to aid brake cooling.

Side, tailgate and bonnet Peugeot Sport Decals

The Rallye goes without a rear spoiler, painted wing mirror covers, painted door handles and door rubbing strips that are fitted to the GTi. The most identifiable feature of the Rallye is the Peugeot Sport livery running down both sides, on the bonnet and on the rear boot. 

Alloy wheels are replaced with light weight Michelin Sport steel wheels painted bright white. These wheels are 6x14" making them half inch wider than the steel wheels fitted on the S1 Rallye.

Bodywork Colour Codes

P0WP - Bianca White
P0GJ - Indigo Blue

'Give the 106 some stick and there is little its rivals can do to keep up'

AutoCar, 1999


The interior of the Rallye has been designed upon the standard 106 Series 2 layout, and hasn't really evolved that much from the S1 Rallye. However, it does incorporate certain features that distinguish it from any other 106 model:
> lightweight royal blue carpet 
> blue instrument binnacle 
> blue lettering on the gear stick
> Seats and front door cards upholstered in special Phoenix cloth incorporating Peugeot Sport logos. 
> Rallye badge above the glovebox

Series 2 Rallye Interior

The interior is minimal and basic to save weight so there are no GTi features such as electric windows or air conditioning. A lot of the interior plastics fitted to the GTi have been removed which means a lot of metal (body coloured white or blue) is showing inside the cabin.

It demonstrates unflappable poise and grip with all four wheels working in total harmony'

Auto Express, 2000


The S1 Rallye created a phenomenon when launched into the hot hatch market, the S2 Rallye has picked up the S1 credentials and taken them to the next level.

Written by Mark Yates, July 2004
Updated by Duncan Conway, December 2005

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