Gravett joined the factory Peugeot squad for 1992 and 1993. Peugeot had great success in European touring car racing, but never challenged in the BTCC, partly because of budgetary issues. The 405 needed a lot of development work, but Gravett pressed on, nearly winning the TOCA challenge at the end of 1992. He managed to finish 2nd at Brands Hatch in 1993, matching Peugeot's best ever result in the BTCC. Steve Soper had made a forceful move on him on the last lap, but was given a penalty and placed in third. He didn't have a drive in 1994, and returned a year later as an independent driver.