The Peugeot 305 was unveiled in November 1977,[2] and was initially available as a four-door saloon with a choice of two petrol engines: a 1290 cc, 65 PS (48 kW; 64 hp) unit for the GL and GR models or a 1472 cc, 74 PS (54 kW; 73 hp) for the top-specification SR model.

Four months later Peugeot announced the 305 GRD, discreetly identified from the outside by the letters "GRD" on the left side of the boot/trunk lid, and powered by a 1548 cc diesel unit incorporating an aluminium engine block with an overhead camshaft along with a Bosch injector pump, and offering up to 50 PS (37 kW; 49 hp) of power.

The facelifted, series 2 models arrived at the Paris Salon in late 1982, to keep the 305 competitive with newer designs like the Ford Sierra and the new version of the Vauxhall Cavalier/Opel Ascona.

[5] They had revised frontal styling, new improved front suspension and steering, a new dashboard and a modified under bonnet and subframe layout to allow the new generation of XU series engines with 5-speed gearbox to be fitted.

However, the GL / GR and van models continued to use the earlier XL/XR series engines with four-speed gearbox for a few more years.

[citation needed] Sales of the 305 were strong in France and most other countries where the car was sold, In Britain, its original competitors were the Ford Cortina MK4, Vauxhall Cavalier MK1 and Morris Marina.

Later in its production life, it was competing with newer rivals including the Ford Sierra, MK2 Vauxhall Cavalier, Austin Montego, Renault 21, and the British-built Nissan Bluebird.

Production of saloons ceased in 1988, following the launch of the slightly larger and more powerful Peugeot 405, which proved a much stronger seller in the United Kingdom.

The three-door Van (Fourgonnette, or Break Service in the home market) continued to be built until June 1990 and was not replaced.

Three bodystyles were available, consisting of a conventional three-box four-door sedan, a five-door station wagon, and a three-door panel van.

It is very compact and was designed to minimise suspension intrusion into the wide flat loadspace, while providing excellent ride and handling.