PEUGEOT is increasing production of the 106 GTI, following a three-month build up of orders in 1997. The sporty version of the restyled 106 went on sale in January last year. During 1997 more than 1,300 customers took delivery of a new 106 GTI, but Peugeot believes that figure could double in 1998.

Peugeot sales director David Brookman said: 'It is flattering when a car is in such demand as the 106 GTI, but it is frustrating for our dealers and our customers. I am confident that with an increased supply of GTIs and the introduction of the new 106 Rallye that we can dramatically reduce our 106 waiting lists in 1998.'

The Rallye was introduced into the UK market last month It uses the same 1.6-litre petrol engine as the GTI, but the cylinder head carries two valves per cylinder instead of four. It costs £10,045 on-the-road, compared to £12,940 for the GTI.