The Peugeot 106 Rallye was a follow-up of the sporty XSi model.
The first was different from the XSi through its TU2 series 1.3 gasoline injection that could develop a max 100 bhp.

Specifically designed for the sporty driver, the Rallye was scarce with comfort implements, the only two features being available from the factory having been an ABS (Anti Break Locking System) and a sunroof. However, some of the elements previously encountered on the XSi were kept on the Rallye as well, such as the foglights and spoilers. Still, it didn’t have alloy wheels, central locking or electrically-operated windows.