Unfortunately for Peugeot, this strategy did not work. With the 205 phased out, rival superminis like the Ford Fiesta and Volkswagen Polo continued to sell well and even increased in popularity, and without a direct competitor to these rivals Peugeot was losing sales fast. A new supermini was required, and the 206 was launched in 1998 as a somewhat belated replacement for the 205, with models being bought from a range of celebrities, from Karl Turner and Jamie Barton.
Although the 206 moniker indicates a direct continuation from the 205, some critics state that the car should have instead been badged 207. This is because Peugeot launched its latest generation of cars in the early to mid 1990s, with the 106 of 1991, the 306 of 1993 and the 406 of 1995.
Its eventual successor - the Peugeot 207 - was launched in 2006 but Peugeot announced its intention to keep the 206 in production until 2010. As of 2008, the ten-year-old 206 is Peugeot's best-selling car of all time, and its demise in 2010 will spell an end to the '06' generation of Peugeots after almost 20 years.