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When replacing the 205 Peugeot stated the size of the car was no longer relevant, so instead deciding to replace it with two vehicles, a slightly smaller car to cover the sales from the lower end of the 205 fan base, and the 306 for those who wanted something slightly bigger. Peugeot were wrong, and the Fiesta and VW Polo continued to increase in sales, and they were losing out big time, so rather hastily, the 206 was born.
By accepting they were wrong, and getting a relevant model out quickly, Peugeot had unwittingly created one of their most successful models of all time. When the 206 was 12 years old it was their biggest selling model ever. Peugeot capitalised on their success in rallying by releasing a GTi version of the 206, which also proved very popular. Peugeot also produced a 206 CC, which featured a coupe body style and powerfold roof.