Profiles

Peugeot 405: The European Car of the Year That Ran for 33 Years

A large French family car from 1987 with saloon and estate bodies, a 16-valve Mi16, a four-wheel drive T16 and a rally car that won Paris-Dakar.

ProfilesBy 9 min readOctober 7, 2026
The short answer

The Peugeot 405 was a large family car built by Peugeot from 1987 to 1997, with Iranian production running until 2020. Voted European Car of the Year for 1988, it sold about 2.5 million cars and spawned the Mi16 and T16 performance versions.

The Peugeot 405 was a large family car that the French maker built from 1987 to 1997, with licensed production in Iran running until 2020. It was sold as a saloon and an estate, in left and right-hand drive, and it was voted European Car of the Year for 1988. About 2.5 million examples were sold worldwide, and it was one of Europe's best-selling larger family cars.

When did the Peugeot 405 go on sale?

Peugeot unveiled ten versions of the 405 saloon in July 1987 for the 1988 model year. Continental sales began in October 1987, and UK sales began in January 1988. Estate sales started in May 1988, while British buyers had to wait until October 1988 for the estate.

The Mi16 performance model arrived in Britain in late 1988, alongside the estate and a 1.8 litre turbo diesel. Four-wheel drive Mi16x4 and GRiX4 versions followed in late 1989, and the car gained a dashboard update in 1990.

A large French family car that won European Car of the Year, ran for 33 years and gave Peugeot a Paris-Dakar winner.

Why did the 405 look like the Alfa Romeo 164?

The 405 bore a close resemblance to the Alfa Romeo 164, which launched the same year and was also styled by Pininfarina. Under the skin the 405 shared its floorpan with the Citroen BX, although it lacked that car's hydropneumatic suspension, except on the four-wheel drive rear axle.

The 405 was never offered as a coupe to the public. Its body came only as a saloon or an estate, in front-wheel or four-wheel drive.

Was the 405 European Car of the Year?

Yes. The 405 won the European Car of the Year award for 1988, and it collected the largest number of votes in the contest's history. The car's production run then stretched across 33 years, and in early 2020 it was counted as the twentieth most long-lived single generation car in history.

The 405 succeeded the Peugeot 305 and also took over from the Chrysler Alpine hatchback and Solara saloon. Those Chrysler models had been discontinued when the Talbot brand was axed a year earlier.

What engines did the 405 offer?

The petrol range ran from a 1.4 litre engine with 70 hp (51 kW) to a 1.9 litre with up to 125 hp (92 kW) on the eight-valve unit. Diesels joined the range in 1988 as a naturally aspirated 1.9 and a turbocharged 1.8 producing 90 hp (66 kW). Every engine was a four-cylinder unit.

Petrol outputs ran from 65 to 160 hp (48 to 118 kW), and the 1.6 litre (1,580 cc) produced 92 hp (69 kW) at 6,000 rpm with a five-speed manual gearbox. The 1.4 litre (1,360 cc) came with a four-speed manual. The petrol engines belonged to the TU and XU families, while the diesels were XUD units.

The transmission changed as well. In 1990 the BE1 gearbox was replaced by the BE3, a change that came as the one millionth car was built.

How did the Mi16 perform?

The Mi16 was the performance version of the 405, using a 16-valve engine that produced 160 hp (118 kW) at 6,500 rpm. Its top speed was 220 km/h (137 mph), and it reached British showrooms in late 1988.

The eight-valve version of the 1.9 litre engine came in two states of tune, producing 110 hp (81 kW) or 125 hp (92 kW). Those outputs put it below the Mi16 in the range, while the 16-valve unit sat at the top of the petrol line-up.

How did the British range develop?

The British range was updated almost every year. The 1.9 petrol gave way to a catalysed 2.0 in 1992, and the standard kit grew richer in 1994. Executive and Quasar models arrived in 1995. The saloon was replaced by the 406 in 1996.

The 1990 update changed the dashboard, while the estate stayed on sale until the 406 estate replaced it in 1997. Other British trims included the GL, GLX, GLD, GLDT, GR, GTXi and STi.

What changed in the 1992 facelift?

The 1992 facelift was deep in engineering terms but restrained in appearance. The chassis structure and bottom plate were modified, and the windscreens became bonded, which raised torsional rigidity considerably. The design was almost indistinguishable from the earlier car to the eye.

The Phase II model arrived with a new boot that offered better access, new rear lights and a new dashboard. The taillights were redesigned and the trim piece between them removed, all in the style of the larger 605. The interior also inherited an all new dashboard and door trim from the 605.

In 1994 power steering and remote central locking became standard on all models, and a driver's airbag was added.

Peugeot 405 specifications at a glance

The table below collects the main figures for the petrol range, the diesels, the Mi16 and the T16. Each row names the version it refers to, so the performance models do not blend into the standard car.

SpecificationDetail
Production (Europe)1987 to 1997, Sochaux and Ryton
Body stylesSaloon and estate, front-wheel or four-wheel drive
Petrol range1.4 to 1.9 litres, 65 to 160 hp (48 to 118 kW)
1.4 litre (1,360 cc)70 hp (51 kW) at 5,600 rpm, four-speed manual
1.6 litre (1,580 cc)92 hp (69 kW) at 6,000 rpm, five-speed manual
Mi16160 hp (118 kW) at 6,500 rpm; 220 km/h (137 mph)
Catalysed version148 hp (109 kW); 214 km/h (133 mph)
Diesel1.9 naturally aspirated, 70 hp (51 kW); 1.8 turbo, 90 hp (66 kW)
T16 (1993)2.0 litre turbo, 200 hp (147 kW) normal boost; 220 hp (162 kW) overboost
T16 built1,061 examples
Drag coefficientCd=0.29 on the 1.6 litre saloon
Worldwide salesAbout 2.5 million

What was the T16 and how many were built?

The T16 arrived in April 1993 to celebrate the competition model's successes. It used a 2.0 litre 16-valve turbocharged XU10J4TE engine with a water-cooled chargecooler, and it had constant four-wheel drive with a 53/47% power distribution and a self-regulating hydraulic rear axle. It was never built as a right-hand drive car.

The T16 produced 200 hp (147 kW) at 1.1 bar (16 psi) of normal boost, or 220 hp (162 kW) at 1.3 bar (19 psi) on overboost, which lasted for 45 seconds. A total of 1,061 examples were built, and ten of them were delivered for use by the National Gendarmerie.

Where was the 405 built?

The 405 was built at Sochaux in France and at Ryton near Coventry, the former Rootes and Chrysler plant, between 1987 and 1997. Right-hand drive cars came from Ryton, and left-hand drive production took place at Sochaux.

Production spread to several other countries. Zimbabwe's Quest built the car until 2002, Egypt's Wagih Abaza produced it, and Chile's Franco-Chilena assembled it at Los Andes, including the STI Phase II model. Taiwan's Yu-Tien Motors built it from 1989 until 1995, production ending after the company went bankrupt.

Argentina's Villa Bosch plant built several saloon models, including diesels, from 1992 to 1999, and total sales in that country passed 500,000 units. Poland's FSC Lublin assembled around 4,000 cars between 1992 and 1995, and Azerbaijan's Khazar Iran Khodro has built the car at the Neftchala Industrial District since 2019.

How many 405s did Peugeot build?

The 500,000th 405 was produced in 1989, and the one millionth left the Sochaux factory in 1990. By 1992, more than 1,500,000 cars had been built.

In Britain the 405 was the eighth best-selling car in 1992 and 1993. Across Europe it was one of the best-selling larger family cars, and it was especially popular in France and Britain.

How did the 405 sell in Thailand?

The 405 became a popular model in Thailand after the success of the Peugeot 505 there. YMC Assembly produced the car in Thailand from 1989 until 1997.

Was the 405 sold in North America?

Yes, but only for a short period. The car was sold in the United States and Canada from 1988, and it was the last Peugeot sold in the United States, on sale between 1988 and 1991. The range included the 1.9-litre DL and S, both with 110 hp (82 kW), and the Mi16 with 150 hp (112 kW).

The estate was sold in North America as the Sportswagon. Peugeot withdrew from both markets after the 1991 model year, which ended the car's North American story.

How did the 405 perform in motorsport?

The motorsport 405 was the Turbo 16 GR rally car, a mid-engined coupe with constant four-wheel drive and an electronically adjustable centre differential. At least four were built, and they competed in hill climbs and the Paris-Dakar rally. Its most notable results came in 1988, 1989 and 1990.

In 1988 Ari Vatanen set a new record at Pikes Peak, and Kankkunen and Piironen won the Paris-Dakar rally in a 405 T16 GR. Vatanen and Ickx won the event in 1989, and Vatanen with Berglund won it again in 1990. The GR shared its technology with the 205 T16.

Three of the GR cars are kept in Peugeot's official museum, and the remaining one is in a private collection. The rally cars were very different from the road-going 405.

How did the 405 race in touring cars?

Racing 405s much closer to the road-going models were campaigned in European touring car racing during the early to mid 1990s. The British Touring Car Championship brought little success for the car, but the French Supertourisme series was a different story.

The 405 won the French series in 1994 and again in 1995, both times in the hands of Laurent Aiello.

How did Iran Khodro develop the 405?

Iran Khodro built the 405 from 1991 to 2020 and used its platform for several derived models. The Pars was a facelifted 405 with a redesigned front, while the RD and ROA were cheaper models that put a 405 body on older Paykan-derived mechanicals. Production of the RD and ROA stopped in 2011.

The Samand was designed as Iran's national car and is also based on the 405 platform. It replaced the long-running Paykan, which itself traced back to the Hillman Hunter. The Hillman Hunter was built by the Rootes Group and Chrysler UK from 1963 to 1979, the year Peugeot bought Chrysler's European operations.

The Arisun, a coupe utility in production since 2015, is still heavily based on the 405 platform.

Frequently asked questions

How many Peugeot 405s were sold?

About 2.5 million vehicles were sold worldwide, in left and right-hand drive, as saloons and estates. The European production run ran from 1987 to 1997, and Iranian production continued until 2020.

How fast was the Mi16?

The 16-valve Mi16 produced 160 hp (118 kW) at 6,500 rpm and could reach 220 km/h (137 mph). The catalysed version produced 148 hp (109 kW) with a top speed of 214 km/h (133 mph).

How much power did the T16 make?

The T16 produced 200 hp (147 kW) at 1.1 bar of normal boost. Overboost raised the output to 220 hp (162 kW) at 1.3 bar, although that level lasted only 45 seconds.

Did the 405 have a coupe version?

No coupe was offered to the public. Only two purpose-built 405 Turbo 16 two-door cars were made, and they are not to be confused with the 405 T16 road car.

Frequently asked questions

How many Peugeot 405s were sold?
About 2.5 million vehicles were sold worldwide, in left and right-hand drive, as saloons and estates. The European production run ran from 1987 to 1997, and Iranian production continued until 2020.
How fast was the Mi16?
The 16-valve Mi16 produced 160 hp (118 kW) at 6,500 rpm and could reach 220 km/h (137 mph). The catalysed version produced 148 hp (109 kW) with a top speed of 214 km/h (133 mph).
How much power did the T16 make?
The T16 produced 200 hp (147 kW) at 1.1 bar of normal boost. Overboost raised the output to 220 hp (162 kW) at 1.3 bar, although that level lasted only 45 seconds.
Did the 405 have a coupe version?
No coupe was offered to the public. Only two purpose-built 405 Turbo 16 two-door cars were made, and they are not to be confused with the 405 T16 road car.

Sources

  1. Peugeot 405 - Wikipedia
Next story / Marques

Peugeot: Lion Brand History, Landmark Cars and Motorsport Record