To mark its success in the 2000 World Rally Championship, Peugeot has announced the introduction of a special edition 306 model, the 2.0 Rallye. 

The Rallye will be available as a five-door hatch and will be powered by a 2-litre 100kW engine. It will replace the top-selling XT hatch.

Standard features on the Rallye will include dual SRS airbags, engine immobiliser, ABS, alloy wheels, automatic rain-sensing wipers, power windows and mirrors, climate control air-conditioning, and Rallye decals. Pricing will begin from $26,990 for the 5-speed manual. An automatic transmission will be available as a $2000 option.

Since its launch in 1994, the 306 has been the cornerstone of Peugeot's increasing popularity around the world and is Automobile Peugeot's best performing export model with just over 70 per cent of production shipped to more than 145 countries.

"The 306 has been an outstanding success in Australia with over 11,700 vehicles sold," says Chris Downie, general manager. "The XT five-door hatch is the best selling model in the range with sales to date of almost 5,000 units."

The 306 has been the recipient of a long list of local and international awards including 'Car of the Year' (What Car? Magazine in the UK), and the Golden Steering Award in Germany. Local awards include 'Best Small Car' as judged by the NRMA, Motor magazine and the RACV. In 1996, against more recently released competition, the 306 was named best car overall and best in class in the inaugural QCAR awards.

The special edition 306 2.0 Rallye goes on sale from April 19.

The 306 range:

306 2.0 Rallye 5-door manual $26,990
306 XT HDi 4-door manual $27,990
306 2.0 Rallye 5-door automatic $28,990
306 XT 4-door automatic $30,990
306 XSi 5-door manual $32,990
306 Cabriolet manual $49,990
306 Cabriolet automatic $51,990

(Prices shown are recommended retail and do not include government statutory and dealer charges)