Written by Iran Khodro
Iran Khodro is Iran’s largest carmaker, founded in 1962 as Iran National and known today as IKCO. In this guide you’ll find the current lineup, from the Tara sedan to the Reera crossover, as well as the Paykan story, the Peugeot years and the key facts about who owns the company.
Iran Khodro at a Glance
Founded 1962 As Iran National, by the Khayami brothers
Headquarters Tehran, Iran Main plant on the Karaj road
Control Private shareholders Led by Crouse Group, since 2025
Production, 2023 556,442 Cars and commercial vehicles
Stock listing Tehran Stock Exchange Code IKCO1
Employees 72,000 Figure for 2022
Iran Khodro Model Lineup
Iran Khodro builds mostly affordable sedans for the Iranian market, so the range is heavy on four-doors with 1.6- and 1.7-liter engines. In addition, there’s a new crossover, a pickup and a few SUVs assembled under licence from China’s Haima.
Sedans and hatchbacks (5)
Compact sedan
Tara
Gas Manual or automatic
The Tara was unveiled in February 2020, and then it went into production in 2021. It rides on a platform derived from the Peugeot 301, and it uses a 1.6-liter TU5P engine with 115 PS. In addition, a six-speed automatic is available, so it’s the most modern sedan in the range.
Compact sedan
Dena Plus
Gas Turbo available
The Dena Plus arrived in 2017 as an update of the Dena, which IKCO built from 2015. It uses the company’s own 1.7-liter EF7 engine, while the turbo version gets more power. Later, the 2023 Dena Javanan added an EFP turbo with 163 PS.
Small sedan
Runna Plus
Gas Based on the Peugeot 206
The Runna has been built since 2012, and it’s based on the Peugeot 206. Then the Runna Plus update arrived in 2020 and 2021 with a 1.6-liter TU5 engine. For example, it’s also sold in Tunisia as the Wallys 719.
Midsize sedan
Soren Plus
Gas Samand lineage
The Soren Plus arrived in 2020 as a facelift of the Soren, which ran from 2007 to 2019. However, it’s still based on the Samand, so it’s one of the older designs in the range.
Small hatchback
Peugeot 207i
Gas 1.6-liter TU5
The 207i is an Iranian update of the Peugeot 206, announced in 2010. It stopped in late 2011, when Peugeot pulled out. After that, it returned in 2016 as a localized version, and a second series followed in 2017.
Crossovers, SUVs and pickups (3)
Compact crossover
Reera
Turbo gas 160 hp
The Reera was unveiled in July 2022, and production started in 2024. It uses a 1.7-liter EF7 turbo with 160 hp and a six-speed automatic. In fact, IKCO calls it the first Iranian national crossover, and an electric version has been announced.
Midsize SUV
Haima 8S
Turbo gas Built under licence
The Haima 8S is a Chinese SUV that IKCO assembles at its Khorasan plant. Mass production started in November 2022, while the seven-seat Haima 7X followed in 2023.
Pickup
Arisun 2
Gas 750 kg payload
The Arisun 2 arrived in 2022 to replace the Arisun 1, which ran from 2015. It’s based on the Peugeot 405, so it uses a 1.8-liter XU7 engine and carries 750 kg.
What Is Iran Khodro?
Iran Khodro was founded on August 29, 1962, as Iran National by the brothers Ahmad and Mahmoud Khayami. Its first big product was the Paykan, a Hillman Hunter built under licence from 1967.
Then, in 1979, the company was nationalized and renamed Iran Khodro. Later, Peugeot became its main partner, so most IKCO cars of the 1990s and 2000s were based on the 405 and 206.
However, Peugeot ended its ties at the end of 2012, then returned with a joint venture in 2016 and suspended it again in 2018. Since then, IKCO has leaned on its own designs, such as the Tara and Reera, as well as Haima models from China. Finally, in February 2025, control passed to private shareholders led by the parts maker Crouse Group.
Iran Khodro History
Iran Khodro has gone from building a British sedan under licence to designing its own cars, so these are the key steps.
- 1962 Iran National is founded by Ahmad and Mahmoud Khayami.
- 1967 Paykan production begins, based on the Hillman Hunter.
- 1969 Then the Paykan pickup, known as the Bardo, joins the range.
- 1979 The company is nationalized and renamed Iran Khodro.
- 1999 Iran Khodro Diesel is formed for trucks and buses.
- 2000 The Peugeot Pars goes on sale, based on the 405.
- 2001 The Samand and the Peugeot 206 enter production.
- 2005 The Paykan sedan ends, while IKCO builds 553,000 vehicles that year.
- 2007 The Soren launches, and work on the EF7 engine begins.
- 2012 However, Peugeot ends its ties, and Runna deliveries begin.
- 2015 Meanwhile, mass production of the Dena begins.
- 2016 IKCO and PSA sign a 50/50 joint venture on June 21.
- 2018 Later, PSA suspends the joint venture.
- 2021 The Tara enters production.
- 2024 After that, production of the Reera crossover begins.
- 2025 Finally, control passes to private shareholders led by Crouse Group.
Iconic IKCO Models
Iran Khodro has built millions of cars, but these six models shaped the company most.
1967
Paykan
Hillman Hunter basis 2.2 million+ built
The Paykan was a licensed Hillman Hunter, and by the mid-1970s almost all of it was made in Iran. Later, a Peugeot-derived engine replaced the Rootes unit. In fact, more than 2.2 million were built before the sedan ended in 2005.
1969
Paykan pickup
Pickup Built until 2014
The Bardo was the pickup version of the Paykan, and it outlived the sedan by nearly a decade, until 2014.
2001
Samand
Sedan Built until 2022
The Samand was nicknamed the new Paykan, because it replaced the old car as Iran’s national sedan. It used a platform derived from the Peugeot 405. In addition, it was assembled in Azerbaijan, Syria, Venezuela and Belarus.
2000
Peugeot Pars
Sedan 405 basis
The Pars was an Iranian update of the Peugeot 405, and it was built in Tehran from 2000. Similarly, it was also assembled in Iraq, Senegal, Azerbaijan and Egypt.
2006
Peugeot 206 SD
Sedan Co-designed with Peugeot
The 206 SD was a sedan version of the 206 that Peugeot and IKCO designed together. As a result, it was exported to markets such as Russia, Ukraine, Turkey and Algeria.
1990s
Peugeot 405
Sedan Built for about 10 years
IKCO built the Peugeot 405 for about a decade before 2000, and the car became the basis for the Pars, the Samand and the Arisun pickup.
Who Owns Iran Khodro?
Iran Khodro is a listed company on the Tehran Stock Exchange, and since February 2025 private shareholders led by Crouse Group control its board. When AutoGathering has a page for a brand, its name below links to that page.
Control Crouse Group Led the private takeover, 2025
This page Iran Khodro Iran
Subsidiary Iran Khodro Diesel Trucks and buses, since 1999
Subsidiary SAPCO Parts supply, since 1993
Subsidiary ISACO After-sales service
Subsidiary IPCO Powertrain, since 1998
Partner brands
IKCO has built cars from these brands under licence or in joint ventures.
For example, Iran Khodro Diesel builds Mercedes-Benz trucks and buses under licence, while IKCO Khorasan has assembled the Suzuki Grand Vitara and Haima SUVs.
Earlier history
- Peugeot (1990s–2018) Peugeot was IKCO’s main partner until 2012, then returned through the IKAP joint venture from 2016 to 2018.
- Renault Pars (2004) IKCO and SAIPA both built the Tondar 90, a Dacia Logan, through a joint venture led by Renault.
- Mercedes-Benz E-Class The subsidiary Top Khodro assembled the W211 E-Class from kits under a 2002 agreement.
- State ownership The government held about 40% in 2010, and a planned sale of 18% that year was canceled.
Iran Khodro Accomplishments
The record of Iran Khodro is mostly about scale, because it has built most of the cars on Iran’s roads.
2.2 million+
Paykans built
More than 2.2 million Paykans were built between 1967 and 2005.
556,442
Production, 2023
Similarly, IKCO built 556,442 cars and commercial vehicles in 2023.
485,091
Cars, 11 months to Feb 2025
In the first 11 months of the Iranian year 1403, IKCO built 485,091 cars, while SAIPA built 315,131.
553,000
Production, 2005
In 2005, IKCO built 553,000 vehicles, the year the Paykan sedan ended.
61%
Market share, 2001
IKCO held 61% of the Iranian market in 2001, compared with 33% for SAIPA.
50,000
Exports, 2011–12
In addition, IKCO exported about 50,000 cars in 2011 and 2012, to markets such as Azerbaijan, Iraq and Syria.
EF7
Own engine
The 1.7-liter EF7, developed with FEV of Germany, runs on gas or natural gas.
154,126
Peugeot-badged cars
Peugeot-badged models were still IKCO’s biggest group in the 11 months to February 2025, with 154,126 built.
Talk IKCO With Other Owners
When you own an IKCO, you’ll have plenty to share, whether it’s a daily Tara, a Dena turbo or a classic Paykan. Soon, AutoGathering will connect this page to an IKCO community space where you can swap tips, compare models and plan meetups.
- Tara
- Dena Plus and Dena turbo
- Runna and Soren
- Reera
- Haima 8S and 7X
- Paykan and Bardo
- Samand
- Peugeot Pars and 206
Iran Khodro FAQ
Who owns Iran Khodro?
Iran Khodro is a listed company. In February 2025, control of the board passed to private shareholders led by Crouse Group, an Iranian parts maker.
Who founded Iran Khodro?
Iran Khodro was founded in 1962 as Iran National by the brothers Ahmad and Mahmoud Khayami.
What was the Paykan?
In fact, the Paykan was a Hillman Hunter built under licence. More than 2.2 million were made from 1967 to 2005.
Is IKCO bigger than SAIPA?
Yes. For example, IKCO built 485,091 cars in the 11 months to February 2025, while SAIPA built 315,131.
Is Peugeot still a partner of IKCO?
No. PSA suspended its joint venture in 2018, although Peugeot-based cars are still a big part of IKCO’s output.
What engines does Iran Khodro make?
Iran Khodro makes the 1.7-liter EF7, developed with FEV, as well as turbo versions of it used in the Dena and Reera.
Where is Iran Khodro listed?
Iran Khodro trades on the Tehran Stock Exchange under the code IKCO1.
Explore More Manufacturers
Finally, compare Iran Khodro with its partners and rivals.
Photo credits
- Header image: Hossein.rezaeii, CC BY-SA 4.0, cropped and resized.
- Black IKCO Tara sedan with a manual…: قندون, CC BY 4.0, cropped and resized.
- White IKCO Dena Plus sedan in Tehran: Jeeputer, CC BY-SA 4.0, cropped and resized.
- Silver IKCO Runna Plus sedan: Alireza rnjj, CC BY-SA 4.0, cropped and resized.
- White IKCO Soren ELX sedan: Diako1971, CC BY-SA 4.0, cropped and resized.
- White Peugeot 207i hatchback in Sari, Iran: قندون, CC BY-SA 4.0, cropped and resized.
- Black IKCO Reera crossover at its launch…: Omidkianafshar, CC BY-SA 4.0, cropped and resized.
- Red Haima 8S crossover: Anonymousfox36, CC BY-SA 4.0, cropped and resized.
- Red IKCO Arisun 2 pickup on display: قندون, CC BY-SA 4.0, cropped and resized.
- Cream Paykan Deluxe sedan on display: قندون, CC BY-SA 4.0, cropped and resized.
- White Paykan pickup in Tehran: Hashtablakoo2000, Attribution, cropped and resized.
- Gray IKCO Samand LX sedan: Meysam, CC BY-SA 3.0, cropped and resized.
- Two Peugeot Pars sedans in front of…: Mahdi621747, CC0, cropped and resized.
- White Peugeot 206 SD sedan in Nishapur,…: قندون, CC BY-SA 4.0, cropped and resized.
- Peugeot 405 SRi sedan from 1992: Nrike darklighter, CC BY-SA 4.0, cropped and resized.