For 2001, Grönholm competed alongside two refugees of SEAT's exit from the championship at the end of 2000; compatriot Harri Rovanperä and the French 1994 world champion, Didier Auriol. Rovanperä and Auriol each contributed single wins, on Swedish Rally and Rally Catalunya respectively (the former to be a sole career win for the Finn, and the latter victory helped by assorted problems for the blisteringly quick debuting Citroën Xsara WRCs), before Auriol left the team at the end of the season. Grönholm, meanwhile, suffered sufficient reliability woes in the first half of the year such that he could manage no higher than fourth overall in the series, although Peugeot did fend off Ford, with a 1-2 result by the two Finns on the season-ending Rally of Great Britain to successfully defend the constructors' championship title.
In 2002, Grönholm – despite now being paired in the factory line-up with defending 2001 champion from Subaru, the BritonRichard Burns – led Peugeot to a repeat of the WRC title double aboard his 206 WRC. His dominance that year was compared to Michael Schumacher's dominance of Formula One. In summary, Peugeot won two drivers' championships, in 2000 and 2002, and three manufacturers' titles in a row between 2000 and 2002. However, by 2003 the 206 WRC was beginning to show its age and was less effective against the competition, notably the newer Xsara WRC and the Subaru Impreza WRC, so it was retired from competition at the end of the season, to be replaced with the 307 WRC, albeit, unlike its predecessor, based not on the production version's hatchback, but its coupé cabriolet body style.
The Peugeot 206 WRC was awarded the Autosport "Rally Car of the Year" in 2002, preceded by the Ford Focus RS WRC and followed by the Citroën Xsara WRC. Peugeot GB created a Peugeot 206 rally championship aimed at young drivers. The championship was created to help young drivers develop their careers. The cars were built by Vic Lee Racing and drivers such as Tom Boardman, Luke Pinder and Garry Jennings all drove in the championship.