
The only model to ever feature a Toyota engine is the Peugeot 108 city car, specifically units produced between 2014 and 2018. It offered a 1.0-liter Toyota 1KR-FE three-cylinder petrol engine generating 69 PS (68 hp), alongside an optional Peugeot-crafted 1.2-liter PureTech engine. This collaboration was part of a joint venture with Toyota for the A-segment platform.
This specific engine integration is a direct result of the Peugeot Citroën PSA Group and Toyota Motor Corporation joint project initiated in 2005. The goal was to co-develop and produce ultra-compact, fuel-efficient city cars. The outcome was the shared platform underpinning the Peugeot 108, Citroën C1, and Toyota Aygo. Market analysis from that period, such as reports from JATO Dynamics, highlighted this as a strategic move to reduce development costs while leveraging Toyota's renowned reliability in small-displacement engines.
For buyers, the main difference lay under the hood. The Toyota unit was known for its simplicity and proven track record, while the PSA PureTech engine offered more power and modern technology like a turbocharger in certain markets. The choice significantly impacts the driving character and long-term ownership costs.
| Feature | Toyota 1.0L 1KR-FE Engine (69 PS) | PSA 1.2L PureTech Engine (83 PS) |
|---|---|---|
| Origin | Toyota Motor Corporation | PSA Group (Peugeot Citroën) |
| Technology | Naturally Aspirated | Naturally Aspirated (Early versions) |
| Key Characteristic | Prioritized reliability and fuel economy | Focused on higher power output |
| Common Association | Toyota Aygo sibling model | PSA small car family |
Practical evidence from ownership communities and long-term reliability surveys, such as those referenced by German automotive club ADAC, often show the Toyota-powered 108 models exhibiting strong durability with relatively lower incidence of major mechanical issues compared to some contemporary Peugeot petrol engines. The 1KR-FE engine's design had been in production for years prior, benefiting from refined manufacturing.
It is crucial for used car buyers or owners to identify the correct engine. The simplest method is to check the vehicle's registration documents or engine bay identification plate. No other Peugeot model, including the 208, 308, or SUVs, has ever left the factory with a Toyota petrol or diesel engine. Post-2018, the Peugeot 108 was discontinued, marking the end of this unique powertrain sharing. For parts and servicing, the Toyota-sourced engine shares many components with the equivalent Toyota Aygo, which can sometimes offer cost benefits.

I owned a 2016 108 with that little Toyota engine for five years. Honestly, it felt like the most dependable part of the car. It wasn't fast, but it never missed a beat. Starting was always instant, even in cold weather, and it sipped fuel. My mechanic always said it was a "known good" engine. When I sold it, the buyer was specifically looking for that 1.0 Toyota version, saying they were known to last. It gave me real peace of mind.

From a valuation perspective, the Peugeot 108 with the Toyota engine often commands a slight premium or attracts more buyer interest in certain markets. The reason is perceived reliability. Industry valuation guides note that for these specific A-segment cars, the engine origin is a notable differentiator. Buyers see the Toyota badge on the engine block as a lower-risk proposition. However, condition and service history remain paramount. While the Toyota engine is robust, a poorly maintained example is still a bad bet. The key is verifying its service history aligns with Toyota's recommendations, not just PSA's.

If you're looking at a used 108 and find the engine, maintenance gets simpler. This 1KR-FE engine is ubiquitous. Any independent shop familiar with the Toyota Aygo can work on it easily. Parts availability is excellent and often competitive. There's a vast reservoir of shared knowledge online from Toyota owners. Common wear items like coils, sensors, or gaskets are straightforward Toyota parts. It removes a layer of anxiety about finding specialized Peugeot expertise for the powertrain. Just remember, the rest of the car—body, electronics, suspension—is still a Peugeot.

This engine swap wasn't a random parts bin raid. It was a strategic collaboration. In the mid-2000s, PSA needed a cost-effective small car solution, and wanted a European production foothold. The joint venture plant in the Czech Republic built all three models side-by-side. Using a Toyota engine in the 108 was a clever engineering and business decision: it guaranteed a reliable, emissions-compliant powertrain without new development costs for PSA. For Toyota, it increased production volume for its engine, amortizing costs. This synergy is why the 108 is the sole Peugeot with a Toyota heart—a product of a specific, time-bound alliance with clear mutual benefits.


