The Rallye was a sports variant of the Peugeot 205, presented in 1988. The car did not really compete with the GTI, but rather represented a basis for the 1300 class of Group N. With an engine that already gave 101 horsepower as standard, the 205 Rallye was widely used both on the track and in rallies. In Italy, for example, the N7 class of the Italian Speed Touring Championship was almost entirely made up of 205 Rallye, which in their category had practically no rivals.