N5 306 Series III

To make room for the newer, smaller 206, Peugeot realigned the 306 range by dropping the three-door Style for a five-door version.

It lasted until October 2000. The 100kW 2.0 engine from the sporty XSi also made its way into the XT five-door hatch and the new XT sedan, with the latter replacing the XR 1.8 sedan.

Meanwhile, the XTDT diesel sedan lived only until April 2000, usurped by the much-improved XT HDi.

In October 2000, as part of a range-wide equipment upgrade, the XT models gained anti-lock brakes.

Except for the 306 Cabriolet, the larger, all-new 307 took over from late 2001.