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The Peugeot Type 54 was an all-new model made in 1903. Producing 250 units in less than a year, it was Peugeot's first considerable production effort. Front-engine design with rear-wheel drive, made possible by a driveshaft, was in its second year of use at Peugeot.

With a new 652 cc engine, 5 bhp (3.7 kW) was available. The Type 54 was a lightweight, compact runabout that seated two, which meant a maximum speed of 40 kilometres per hour (25 mph).