The aerodynamic 402 was enthusiastically received by the market, but it was half a class larger than the Citroën Traction Avant which had in many ways rewritten the rule book when launched in 1934, and which during the later 1930s acquired a range of different engine sizes and wheelbase lengths.

The 302 could compete more directly with the Citroën as a modest return to stability after the economic crisis of 1929 hinted at future growth in market demand for mid-sized saloons.

An eye catching detail was the hole for the starter handle on lower part of the front grill, which passed through the middle digit of the vertically inscribed name "302", coloured in patriotic blue, white and red.

In addition to the saloon and the manufacturer's own two-door four-seater cabriolet,[3] a small number of special bodied versions were produced including a Darl'mat built 302 roadster and a coupé-cabriolet incorporating the automatic fold-away steel roof design patented by Georges Paulin as early as 1931.

[3] A couple of years earlier, Peugeot had scored a first among the volume automakers when they introduced an upgraded 201 featuring independent front suspension, and with competitors such as Renault reluctant to invest in keeping up on the technical front, and subsequent Peugeot models such as the 302 featuring independent front suspension, Peugeot were able to win plaudits for a technical advance which provided for superior road holding and comfort, especially when the car was driven briskly on poor roads.