Peugeot built their first motorcycle in 1898 with a De Dion-Bouton engine mounted on the rear wheel. This model was shown at the 1898 Paris Exhibition but was not put into production. Peugeot did produce a tricycle in 1898 although most of the machine was actually manufactured by De Dion-Bouton.
In 1900 Peugeot started to manufacture quadricycles but these fell out of favor and ceased to be produced by 1903. In 1901, spurred on by the success of the French built Werner Brothers and Company Motobicyclette, Peugeot produced their own motorcycle using a Swiss made Zürcher and Lüthi (ZL) engine.
The Peugeot 500 M, a 500 cc (31 cu in) dual overhead camshaft model appeared in 1914, the first of this type. Peugeot was the leading French motorcycle manufacturer until the 1950s producing many models. As of 2012, Peugeot is the only French motorcycle maker
Early Peugeot motorcycles were particularly advanced, sporting overhead camshafts as early as 1907. By 1913, Peugeot’s advanced 500cc parallel-twin race bikes had appeared, sporting overhead camshafts and four valves per cylinder. After World War I, the company concentrated on singles, but also made a refined V-twin and a lightweight two-stroke. In the mid-1920s, they built unit-construction 350cc side-valve single-cylinder machines, followed by 125 and 500cc singles. This single-cylinder 200cc 1939 Peugeot Model P108 is in excellent condition.