1998 Peugeot 106 S2 Rallye

The Peugeot 106 S2 Rallye in Indigo Blue is a rare and charming little car today.

The creation of the original 106 Rallye can be summed up in one word: homologation. During the early 1990s, the sub-1300cc racing class was highly competitive. However, Peugeot's sporty 106 XSi didn’t meet the class rules due to its 1.4-litre engine.

The solution was straightforward: Peugeot installed a 1.3-litre version of the TU-series four-cylinder engine under the hood. This eight-valve, single overhead camshaft engine featured a high-compression cylinder head, a dedicated intake manifold, and an aggressive camshaft, delivering 100bhp at an impressive 7200rpm. Unlike its predecessor, the 205 Rallye, which relied on dual carburettors, the 106 Rallye used Magneti Marelli fuel injection.

The Rallye's suspension layout mirrored that of the XSi, with struts at the front and a trailing arm and torsion bar setup at the rear – a hallmark of Peugeot engineering. While the springs and dampers were shared with the XSi, the Rallye boasted thicker anti-roll bars for a sharper handling profile.

One of the most distinctive visual features of the Rallye was its 5.5x14-inch white Michelin steel wheels, which concealed front disc brakes and rear drum brakes.

In 1998, Peugeot introduced the S2 Rallye, another homologation model. This version was powered by a 1.6-litre 8-valve engine from the TU family. The suspension was identical to the GTI's, but once again, the Rallye stood out with its signature white-painted Michelin steel wheels. Unlike the S1, which had rear drum brakes, the S2 was equipped with 254mm ventilated discs at the front and solid 254mm discs at the rear.

This particular S2 Rallye has been well-preserved. It comes with approximately 11 months of MOT, 116,000 miles on the clock, original handbooks, a service book, and two keys. It’s also equipped with an immobiliser.

The bodywork is in excellent condition, with only a few minor marks and stone chips on the bonnet. The original interior is in good shape and still looks fantastic. The wheels are the original white steel set, paired with good tyres.

This car is an absolute joy to drive. With just over 100bhp, it’s not about outright power, but on twisty roads, it delivers an exhilarating driving experience.