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Peugeot 306: The Small Family Hatch That Shared Its Bones With the Citroen ZX

Launched in 1993, the 306 ran through three phases, produced the GTI-6 and Rallye, raced in touring cars and ended with the 307 in 2001.

ProfilesBy 9 min readOctober 8, 2026
The short answer

The Peugeot 306 was a small family car built from 1993 to 2002 and replaced by the 307 in 2001. It shared its floorpan with the Citroen ZX, used Peugeot's TU, XU and XUD engines, and produced the GTI-6 and UK-only Rallye.

The Peugeot 306 was a small family car that the French maker built from 1993 to 2002. It replaced the 309 and was itself succeeded by the 307 in 2001, with cabriolet and estate versions continuing until 2002. Under the skin it was closely related to the Citroen ZX, and it sold strongly in Britain and across Europe.

When did the Peugeot 306 go on sale?

The 306 was developed between 1990 and 1992 for a launch in February 1993. It arrived as a three- and five-door hatchback, with saloon and cabriolet models following a year later. The Phase 1 car was known as the N3 in Australia, where it was introduced in 1994.

Concept versions appeared around the end of 1990. The motoring press first reported that the car would replace the smaller 205, but by the end of 1991 Peugeot had confirmed that the 306 would take over from the 309 and some versions of the 205.

A small Peugeot hatch built on the Citroen ZX platform, which sold strongly in Britain and went on to win touring car titles.

Why did the 306 replace the 309?

The 309 had broken with Peugeot's normal numbering system because it was released before the older and larger 305 was axed. The 306 was the successor to the 309. Its launch came while the entry-level 106 supermini was already on sale, having arrived in September 1991.

The 205 stayed in production for several more years after the 306 arrived. That overlap meant several small Peugeots were on sale at once.

The 306 was virtually identical to the Citroen ZX in mechanical terms, because both cars used the same floorpan and core structure. The ZX had launched two years before the 306, but the 306, with its Peugeot 205 derived Pininfarina styling, proved the more successful of the twins.

The same platform also underpinned the Citroen Berlingo and Peugeot Partner, and the chassis passed to the ZX's replacement, the Citroen Xsara. Platform sharing between Peugeot and Citroen had been group policy since the late 1970s, after Peugeot took over the bankrupt Citroen in the wake of the 1974 oil crisis.

What engines did the 306 use?

The early petrol engines were derivatives of the TU 8-valve series in 1.1, 1.4 and 1.6 litre sizes. The 1.1 was soon dropped, but the 1.4 and particularly the 1.6 sold well because the 1.6 balanced performance with economy. Larger 1.8 and 2.0 litre XU units were restricted to automatic and performance models.

The diesel was the XUD, offered in normally aspirated and turbocharged forms. It began life at 1769 cc before its capacity was enlarged to 1,905 cc, and it used a Ricardo Comet combustion chamber. In Australia the only engines on offer were the 1.8 and 2.0 litre units.

How was the 306 engineered underneath?

The front wheels were driven through a conventional chassis with a MacPherson strut layout and an anti-roll bar. The rear used the independent trailing arm and torsion bar set-up first seen on the 305 estate, while PSA's engineers added passive rear wheel steering through compliance bushes, less than on the ZX.

The diesel and larger petrol engines were canted as far back as possible in the engine bay. That placed more weight behind the front axle line, lowered the centre of gravity and reduced understeer. The car is prone to wear in the rear axle mounting bushes at high mileage, and in the trailing arm bearings, which can require an expensive rebuild.

306 specifications at a glance

The table below covers the launch car and the main performance variants. Each row names the phase or model it describes, so the GTI-6 and Rallye figures are not mixed with the standard range.

SpecificationDetail
Production years1993 to 2002
LaunchFebruary 1993, three- and five-door hatchback
Petrol range (Phase 1)TU 8-valve in 1.1, 1.4 and 1.6 litre sizes
Larger petrol engines1.8 litre; 2.0 litre 8-valve (XSi) and 16-valve (S16)
DieselXUD, 1769 cc enlarged to 1,905 cc
S16 engine155 bhp XU10J4 ACAV, five-speed gearbox
GTI-6 engine167 bhp XU10J4RS, close-ratio six-speed gearbox
Australian XT99 kW (132 bhp), five-speed gearbox
UK Rallye (1998)Price GBP 15,995; 65 kg (143 lb) lighter than the GTI-6
UK Rallye production500 or 501 cars
Euro NCAP (1998)Three stars for adult occupants

What trim levels did the 306 come in?

Trim levels were XN, XL, XR, XT and XS, with XN the most basic and XT the highest specification in the early range. The XT was offered only as a five-door, while the XR, XN and XL were also available as three-doors. The D-Turbo and XSi came in both body styles, and the XS and S16 were three-door only.

A diesel model carried a d after its spec level, and a turbodiesel carried dt. Special Alpine editions from 1994 were three-door only, and the sedan range used the SN, SL, SR and ST designations.

What changed in the Phase 2 car?

The 306 underwent the only major revamp of its life in May 1997 with the Phase 2 model. The basic shape stayed the same, but the lights, grille and bumpers were redesigned to match the rounder Peugeot family look established by the 406. Indicator lamps moved into the headlamp unit, and the Phase 2 car added an estate.

Phase 2 also brought a digital odometer and a new tailgate typeface, and the 1.8 and 2.0 petrol engines gained 16-valve heads with modest power increases. The UK market trims became L, LX and GLX. From the 1999 model year, an aluminium-effect centre console and a chrome Peugeot logo on the steering wheel were added.

What changed in the Phase 3 car?

Phase 3 arrived in mid-1999 with clear headlamp lenses, round clear-lensed foglamps and complete colour-coding of the exterior trim. The tailgate lost its black plastic strip, the rear windscreen gained a flush glass seal, and the rear badge was redesigned.

The XSi, XT and D-Turbo received the GTI-6's bodykit and interior additions. The ageing XUD diesel gave way to the newer HDi engine with common-rail injection, while some base models used the DW8 normally aspirated diesel. Almost all models had ABS and multiple airbags, and rain-sensing wipers were standard on all but the base specification.

Which performance versions did the 306 have?

The performance range included the S16, the GTI-6, the XSi and the D-Turbo. The D-Turbo was a hot hatch that put the diesel engine into a petrol XS body, and it is often cited as a rare early affordable performance diesel hatch. Most D-Turbo cars were three-doors, though a few five-door examples exist.

The XS and D-Turbo came with front fog lights, deeper spoilers, sports seats and a wider chromed exhaust tailpipe. The XSi 8v 2.0 gained subtle side skirts and 15-inch five-spoke alloys, which became standard shortly after launch.

How did the GTI-6 improve on the S16?

The S16, whose name stood for soupape-16, was a Phase 1-only three-door with 16-valve XU-series engines and Magneti Marelli fuel injection. It produced 155 bhp from the XU10J4 ACAV, and it was replaced by the GTI-6 in 1996.

The GTI-6 added a close-ratio six-speed gearbox in place of the S16's five-speed and a reworked 167 bhp XU10J4RS engine. It gave more mid-range torque and more flexible power delivery. The GTI-6 remained in production until the end of 2000 and received the Phase 2 and Phase 3 updates while keeping much of its mechanical specification.

Was there a UK-only Rallye?

Yes. The Rallye was sold only in the UK and launched in 1998 using the GTI-6 mechanicals. It had less standard equipment, including manual windows and mirrors, no air conditioning and cloth in place of leather, and it was 65 kg (143 lb) lighter than the GTI-6.

At a price of GBP 15,995, over GBP 2,000 below a GTI-6, the Rallye came in three colours, Black, Cherry Red and Bianca White. Production was 500 or 501 cars. Some Rallyes straddled the Phase 2 and Phase 3 models and carried Phase 3 features such as the flush glass tailgate.

How did the 306 serve the French police?

Eighty Phase 2 S16 cars joined the French National Gendarmerie's Rapid Intervention Brigade in 1997, replacing a fleet of Peugeot 405 T16 sedans. They were fitted with a single roof-mounted flashing light, an extra interior mirror and standard Gendarmerie markings for autoroute duties.

The Gendarmerie's 306 S16s were eventually replaced by the Subaru Impreza WRX in 2006. That fleet gave the 306 a high-profile public role late in its production life.

How did the 306 sell and rate with owners?

The 306 was among Britain's best-selling cars from 1994 to 1998 and narrowly missed the top 10 in its last three years. Demand in France and much of Europe was also robust, although the car placed poorly in several ownership and customer satisfaction surveys of the time.

One such survey was run by JD Power in association with the BBC Top Gear programme. The saloon was axed from the UK market in 1999 but stayed on sale in the rest of Europe until 2002, while production of the hatchback ended in 2001 when the 307 arrived.

How did the 306 perform in motorsport?

The 306 Maxi competed in Group A of the French and World Rally Championships. The GTI version also won the Spa 24 Hours in 1999 and 2000, and it took the Danish Touringcar Championship in 1999, 2000 and 2001.

The 306 GTi was a common sight in the British Touring Car Championship from 2000 to 2003. In 2000 Alan Morrison, driving for Vic Lee Racing in Class B, won 13 class races and finished on 264 points, just 4 ahead of James Kaye on 260. In 2001 the Harrison and Moen pairing finished first and third in the championship standings.

How did the 306 do in crash tests?

Euro NCAP tested the 306 in 1998 and awarded three out of five stars for protection of adult occupants. That was a competitive result, because the 1999 Ford Escort achieved only two stars, while the 1999 Ford Focus and the 1998 Vauxhall/Opel Astra scored four.

In Australia the used car safety ratings gave the 306 a 4-star rating out of 5 for driver and occupant safety, and an excellent rating for other road users. The 2006 ratings described the 1994 to 2001 cars as significantly better than average in protecting their occupants.

Frequently asked questions

What replaced the Peugeot 306?

Production of the hatchback stopped in 2001, when the Peugeot 307 arrived. Cabriolet and estate models stayed on sale until 2002, and that ended the range.

How many Rallyes were made?

Either 500 or 501 UK Rallyes were produced. The colours were 100 black, 200 Cherry Red, 200 Bianca White and possibly one Dragoon Blue.

Was the 306 a diesel performance car?

The D-Turbo put a diesel unit in a petrol XS body. It is often cited as one of the first affordable performance diesel hatches, although the MkII Volkswagen Golf GTD of the mid-1980s is argued to have come first.

What was the Euro NCAP rating?

In 1998 the 306 earned a three-star result for adult occupant protection. The 1999 Ford Escort managed only two stars in the same test period.

Frequently asked questions

What replaced the Peugeot 306?
The hatchback was discontinued in 2001 to make way for the Peugeot 307. The cabriolet and estate variants both remained on sale until 2002, when the 306 range ended.
How many Rallyes were made?
Either 500 or 501 UK Rallyes were produced. The colours were 100 black, 200 Cherry Red, 200 Bianca White and possibly one Dragoon Blue.
Was the 306 a diesel performance car?
The D-Turbo was essentially a petrol XS with the diesel unit installed. It is often cited as one of the first affordable performance diesel hatches, although the MkII Volkswagen Golf GTD of the mid-1980s is argued to have come first.
What was the Euro NCAP rating?
In 1998 the 306 earned a three-star result for adult occupant protection. The 1999 Ford Escort managed only two stars in the same test period.

Sources

  1. Peugeot 306 - Wikipedia
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