Loeb joins an elite group after retaining the title

The Citroen driver needed a podium finish in the 13th of the 16 rounds to retain his crown.

Loeb's eight rally wins so far this season is already a record, beating his six victories last year.

Norway's Petter Solberg, in a Subaru, had led until the 24th stage but hit a rock in the penultimate stage.

Australian Chris Atkinson finished in third place.

I didn't want to get involved in the battle with Petter and Marcus Sebastien Loeb More Loeb reaction

Loeb is the second Frenchman to have won the world title after Didier Auriol, the 1994 champion.

He is the fourth man to retain the title after Finns Juha Kankkunen (1986/87) and Tommi Makinen (1996/99) and Italian Massimo Biasion (1988/89).

"To be honest, it didn't matter if I was first, second or third in this rally - I just wanted to win the championship," said Loeb.

Sebastian Loeb has been dominant this year and fully deserves the championship From CP Have your say on Five Live

"I didn't want to get involved in the battle with Petter and Marcus because I would have been very annoyed with myself if I'd gone off as a result of me chasing them and then making a mistake."

Solberg was sorely disappointed to miss out on his first victory since Mexico in March, but said he had no choice but to retire after damaging his suspension.

"We could do nothing to avoid the rock, it was right in the line," he said.

"It happened so fast and that was that. I'm absolutely gutted. There's nothing more to say."

Final positions in Rally of Japan:

1 Marcus Gronholm (Fin) Peugeot 3 hours 25 minutes 32 seconds
2 Sebastien Loeb (Fra) Citroen 3:26:54
3 Chris Atkinson (Aus) Subaru 3:28:12
4 Francois Duval (Bel) Citroen 3:28:31
5 Harri Rovanpera (Fin) Mitsubishi 3:29:31
6 Toni Gardemeister (Fin) Ford 3:30:04
7 Roman Kresta (Cze) Ford 3:31:04
8 Daniel Carlsson (Swe) Peugeot 3:32:11
9 Antony Warmbold (Ger) Ford 3:33:11
10 Armin Schwarz (Ger) Skoda 3:37:39

World standings:

(After 13 of 16 events)
1 Sebastian Loeb (Fra) 107 points
2 Marcus Gronholm (Fin) 71
3 Petter Solberg (Nor) 65
4 Markko Martin (Est) 53
5 Toni Gardemeister (Fin) 50
6 Harri Rovanpera (Fin) 31