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Description
The 306 was developed between 1990 and 1992 ready for the 1993 model year. It was a replacement for the Peugeot 309 (which had broken with Peugeot's normal ascending numbering system partly due to it being released before the older and larger Peugeot 305 was axed).

Mechanically, the 306 is virtually identical to the Citroën ZX, which was launched two years before the 306: both cars use the same floorpan and core structure. The 306, with its attractive Peugeot 205 derived Pininfarina styling, was a more successful car than its twin. The Citroën Berlingo and Peugeot Partner were also built on the same platform. The chassis used by the 306 and ZX was also used in the ZX's replacement, the Citroën Xsara. The sharing of platforms between Peugeot and Citroën has been parent company PSA Peugeot Citroën policy since the late 1970s, after the Peugeot takeover of the then bankrupt Citroen in the wake of the 1974 oil crisis. The first car being the Peugeot 104 based Citroën Visa and Citroën LNA and Talbot Samba. The policy continues today throughout the Peugeot and Citroën ranges. The entry level Peugeot 107, Citroën C1 and Toyota Aygo though are a Toyota Design, rather than a PSA one.

The 306 was released in March 1993 as a 3- and 5-door hatchback, with saloon and cabriolet models being introduced later. The Phase 1 model was known as the N3 in Australia, and introduced in 1994.

A bewildering array of different model types were offered during the life of the Phase 1 model, including Genoa, XSS, X, XT, XRdt and Xd. Later were added various 'performance' models, such as the S16, XSi and GTI-6 (petrol) and the D-Turbo S (diesel).

All variants of the 306, with the exception of the GTI-6 and cabriolet models, were priced very competitively.

The 306 underwent the only major revamp of its life in May 1997, with the launch of the "Phase 2" version (N5 in Australia). The basic shape remained the same, but lights, grille and bumpers were redesigned in an effort to bring the styling into line with the new, more rounded, Peugeot family look established with the Peugeot 406. Indicator lamps were now incorporated into the headlamp unit and the new style "block filled" Peugeot lion logo was adopted. The Phase 2 also saw the addition of an estate version.

A new-style typeface for the car's model number was adopted on the tailgate, removing the black plastic backing. There were also some changes to the dashboard layout, including a digital odometer, and trim quality which freshened up the car in the face of increasingly stiff competition from other manufacturers. New engines were also offered, with both 1.8 and 2.0 petrol engines gaining 16-valve cylinder heads together with modest power increases. At this time, the previous trim designations were replaced by L, LX & GLX for the UK market. XS, XSi and GTI-6 models continued as before, but with the Phase 2 headlight, grille, bumper and other cosmetic updates alongside the rest of the range.

Cars from 1998 onwards (1999 model year) received further enhancements, including an aluminium-effect centre console on certain versions and a chrome Peugeot logo on the steering wheel. Other updates included removal of the black strip on the bootlid, colour-coded bumpers on some models and new upholstery in the cabin.

Models from mid-1999 saw further improvements and exterior modifications, including clear lenses on the headlamps, round and clear lensed foglamps, complete colour-coding of the exterior trim, removal of the black plastic strip on the lower edge of the tailgate, flush glass seal to rear windscreen, a redesigned tailgate rear badge, different rear wiper and new paint colours. Interior upgrades were more minor, with the gearknob becoming rounder and silver topped, while the instrument binnacle received a silver background and white instrument needles in place of the previous red versions.

Despite Peugeot's efforts, the car placed poorly in a variety of ownership and customer satisfaction surveys of the time, such as the annual JD Power survey which was run in association with the BBC Top Gear television programme. Nevertheless, the car featured in the Top 10 Best Selling Cars In Britain from 1994–1998, and only narrowly missing out on the top 10 during its final three years on sale. Sales in France and most of the rest of Europe were also strong.

In Australia a run-out model was introduced in early 2001. Based on the N5 XT 5-door model, it was called the 306 Rallye. As with other XT variants, it had the same 99 kW/132 bhp engine and 5-speed gearbox as the late XSI models but different (less sporty) suspension and interior trim. It was also available in automatic. It replaced the XT model in the lineup and was discounted by AU$2000. This model was different from the 306 Rallye sold in the UK in 1998 - 99, which was a 3-door car based on the 306 GTI-6.

The hatchback 306 was discontinued in 2001 to make way for its replacement, the Peugeot 307. The cabriolet and estate variants both remained on sale until 2002. The slow–selling saloon was axed from the United Kingdom market in 1999, but it was still available in the rest of Europe until 2002.

Description
The 306 was developed between 1990 and 1992 ready for the 1993 model year. It was a replacement for the Peugeot 309 (which had broken with Peugeot's normal ascending numbering system partly due to it being released before the older and larger Peugeot 305 was axed).

Mechanically, the 306 is virtually identical to the Citroën ZX, which was launched two years before the 306: both cars use the same floorpan and core structure. The 306, with its attractive Peugeot 205 derived Pininfarina styling, was a more successful car than its twin. The Citroën Berlingo and Peugeot Partner were also built on the same platform. The chassis used by the 306 and ZX was also used in the ZX's replacement, the Citroën Xsara. The sharing of platforms between Peugeot and Citroën has been parent company PSA Peugeot Citroën policy since the late 1970s, after the Peugeot takeover of the then bankrupt Citroen in the wake of the 1974 oil crisis. The first car being the Peugeot 104 based Citroën Visa and Citroën LNA and Talbot Samba. The policy continues today throughout the Peugeot and Citroën ranges. The entry level Peugeot 107, Citroën C1 and Toyota Aygo though are a Toyota Design, rather than a PSA one.

The 306 was released in March 1993 as a 3- and 5-door hatchback, with saloon and cabriolet models being introduced later. The Phase 1 model was known as the N3 in Australia, and introduced in 1994.

A bewildering array of different model types were offered during the life of the Phase 1 model, including Genoa, XSS, X, XT, XRdt and Xd. Later were added various 'performance' models, such as the S16, XSi and GTI-6 (petrol) and the D-Turbo S (diesel).

All variants of the 306, with the exception of the GTI-6 and cabriolet models, were priced very competitively.

The 306 underwent the only major revamp of its life in May 1997, with the launch of the "Phase 2" version (N5 in Australia). The basic shape remained the same, but lights, grille and bumpers were redesigned in an effort to bring the styling into line with the new, more rounded, Peugeot family look established with the Peugeot 406. Indicator lamps were now incorporated into the headlamp unit and the new style "block filled" Peugeot lion logo was adopted. The Phase 2 also saw the addition of an estate version.

A new-style typeface for the car's model number was adopted on the tailgate, removing the black plastic backing. There were also some changes to the dashboard layout, including a digital odometer, and trim quality which freshened up the car in the face of increasingly stiff competition from other manufacturers. New engines were also offered, with both 1.8 and 2.0 petrol engines gaining 16-valve cylinder heads together with modest power increases. At this time, the previous trim designations were replaced by L, LX & GLX for the UK market. XS, XSi and GTI-6 models continued as before, but with the Phase 2 headlight, grille, bumper and other cosmetic updates alongside the rest of the range.

Cars from 1998 onwards (1999 model year) received further enhancements, including an aluminium-effect centre console on certain versions and a chrome Peugeot logo on the steering wheel. Other updates included removal of the black strip on the bootlid, colour-coded bumpers on some models and new upholstery in the cabin.

Models from mid-1999 saw further improvements and exterior modifications, including clear lenses on the headlamps, round and clear lensed foglamps, complete colour-coding of the exterior trim, removal of the black plastic strip on the lower edge of the tailgate, flush glass seal to rear windscreen, a redesigned tailgate rear badge, different rear wiper and new paint colours. Interior upgrades were more minor, with the gearknob becoming rounder and silver topped, while the instrument binnacle received a silver background and white instrument needles in place of the previous red versions.

Despite Peugeot's efforts, the car placed poorly in a variety of ownership and customer satisfaction surveys of the time, such as the annual JD Power survey which was run in association with the BBC Top Gear television programme. Nevertheless, the car featured in the Top 10 Best Selling Cars In Britain from 1994–1998, and only narrowly missing out on the top 10 during its final three years on sale. Sales in France and most of the rest of Europe were also strong.

In Australia a run-out model was introduced in early 2001. Based on the N5 XT 5-door model, it was called the 306 Rallye. As with other XT variants, it had the same 99 kW/132 bhp engine and 5-speed gearbox as the late XSI models but different (less sporty) suspension and interior trim. It was also available in automatic. It replaced the XT model in the lineup and was discounted by AU$2000. This model was different from the 306 Rallye sold in the UK in 1998 - 99, which was a 3-door car based on the 306 GTI-6.

The hatchback 306 was discontinued in 2001 to make way for its replacement, the Peugeot 307. The cabriolet and estate variants both remained on sale until 2002. The slow–selling saloon was axed from the United Kingdom market in 1999, but it was still available in the rest of Europe until 2002.