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Armand Peugeot became interested in the automobile early on and, after meeting with [[Gottlieb Daimler]] and others were convinced of its viability. The first Peugeot automobile, a three-wheeled, [[steam car|steam-powered car]] designed by [[Léon Serpollet]], was produced in 1889; only four examples were made.<ref name="autogenerated1">Georgano, p22.</ref> [[Steam power]] was heavy and bulky and required lengthy warmup times. In 1890, after meeting Daimler and [[Émile Levassor]], steam was abandoned in favour of a four-wheeled car with a petrol-fuelled [[internal combustion engine]] built by [[Panhard]] under Daimler licence.<!-- four were built at Peugeot's plant in [[Valentigney]], sez Georgano; Darke, p.1685-6, says this was Robert Peugeot's new Lion-Peugeot plant, built-in 1906.--> The car was more sophisticated than many of its contemporaries, with a three-point suspension and a sliding-gear transmission.<ref name="Darke, p.1683.">Darke, p.1683.</ref> An example was sold to the young [[Alberto Santos-Dumont]], who exported it to Brazil.<ref>Wykeham, P. ''Santos-Dumont: a Study in Obsession''. London: Putnam. 1962. pp.30-1</ref>
More cars followed, 29 being built in 1892, 40 in 1894, 72 in 1895, 156 in 1898, and 300 in 1899.<ref name="autogenerated1"/> These early models were given "type" numbers. Peugeot became the first manufacturer to fit rubber [[tire|tyres]] (solid, rather than [[pneumatic tire|pneumatic]]) to a petrol-powered car.{{Citation needed|date=June 2007}} Due to family discord, Armand Peugeot founded the Société des Automobiles Peugeot, in 1896, but in 1910 it was merged back with the family's Peugeot bicycle and motorcycle business.<ref name="Watkins 2024 e339">{{cite web | last=Watkins | first=Gary | title=Peugeot unveils tweaked 2024 WEC line-up | website=Motorsport.com | date=19 Jan 2024 | url=https://www.motorsport.com/wec/news/peugeot-unveils-tweaked-2024-wec-line-up/10567338/ | access-date=20 Jan 2024}}</ref>
Peugeot was an early pioneer in motor racing, with [[Albert Lemaître]] winning the world's first motor race, the [[Paris–Rouen (motor race)|Paris–Rouen]], in a 3 hp Peugeot. Five Peugeots qualified for the main event, and all finished. Lemaître finished 3 min 30 sec behind the Comte [[Jules-Albert de Dion|de Dion]] whose steam-powered car was ineligible for the official competition.<ref name="autogenerated2">Georgano, p.22.</ref> Three Peugeots were entered in the [[Paris–Bordeaux–Paris]], where they were beaten by Panhard's car<ref>Darke, p.1684. The Panhards were disqualified for being two-seaters. Georgano, p.22.</ref> (despite an average speed of {{Convert|20.8|km/h|mph|1|abbr=on}}<ref name="autogenerated4">Georgano, p.20.</ref> and taking the 31,500 franc prize).<ref name="autogenerated4"/> This also marked the debut of [[Michelin]] pneumatic tyres in racing,<ref name="Darke, p.1684.">Darke, p.1684.</ref> also on a Peugeot; they proved insufficiently durable.<ref name="autogenerated2"/> Nevertheless, the vehicles were still very much [[horseless carriage]]s in appearance and were steered by a [[tiller]].
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