The 206 was originally launched as a hatchback with 1.1L, 1.4L, and 1.6L petrol engines and a 1.9L diesel engine, a HDi version with common rail coming later. In 1999 a 2.0L GTi capable of 210 km/h (130 mph), and in 2003 a tuned version of the GTi called the Peugeot 206 RC (GTi 180 in the UK), were added to the range. It did 0–100 km/h (0-62 mph) in 7.4s and it reached a top speed of 220 km/h (137 mph) with 177 PS (130 kW).
In 2001, two more versions of the 206 were launched - the 206 CC (coupé convertible) with a folding steel roof and the 206 SW station wagon. A 4-door notchback sedan version, developed by Iran Khodro, was unveiled in late 2005, and it is available in the Iranian, North African, Chinese, Russian, Romanian, Turkish and Bulgarian markets.
The 206 is mainly manufactured in Peugeot's Poissy and Mulhouse factories although the car is also produced by Iran Khodro in Iran for that market; a notchback sedan model was developed in Iran under the name "Peugeot 206 SD" which will reportedly be exported as well. It was assembled in Chile for the Mexican and Colombian markets (French made 206s were cheaper than Chilean-built ones, in Chile). The Brazilian production in Porto Real, Rio de Janeiro, started in 2001, followed by the SW version in 2005. The Brazilian production features 1.0L 16V, 1.4L 8V, and 1.6L 16V engines, the last two of which are flexible fuel engines (petrol/ethanol). The 1.0L version used a Renault-sourced engine and was produced until 2006.
In the EuroNCAP crash tests, the 206 (with dual frontal airbags and no side airbags) received a frontal rating of 11 / 16 and a side rating of 14 / 16 for a total of 4 / 5 stars.