Iran’s Secret Car Giant: The Untold Story of Iran Khodro

Iran Khodro is the largest car manufacturer in the Middle East, yet most people outside the region have never heard of it. While brands like Ford, Volkswagen, and Toyota dominate global conversations, Iran Khodro quietly built an entire automotive industry under decades of sanctions and political isolation. Founded in 1962, the company—then called Iran National—started by assembling the British Hillman Hunter, which became the legendary Paykan. For decades, the Paykan was Iran’s “people’s car,” putting the nation on wheels much like the Volkswagen Beetle did in Germany. In the 1990s, Iran Khodro partnered with Peugeot and Renault, producing popular models like the Peugeot 405 and 206. But when international sanctions intensified, foreign companies withdrew and supply chains collapsed. Instead of shutting down, Iran Khodro did something remarkable: it rebuilt its industry through reverse engineering, local suppliers, and domestic engineering. The company introduced Iran’s first “national car,” the Samand, and developed engines like the EF7 capable of running on compressed natural gas. Today, despite decades of economic pressure, Iran Khodro continues producing modern vehicles such as the Dena Plus, Runna, and Tara, while even experimenting with electric vehicles. This is the story of one of the most resilient and unusual car companies in the world. If sanctions disappeared tomorrow and a brand-new IKCO sedan cost only $12,000… would you buy one? Let us know in the comments. Subscribe to RawenzCars for more hidden stories from the automotive world. #IranKhodro #CarHistory #AutomotiveHistory #IKCO #Paykan #CarDocumentary #HiddenCarBrands #AutoIndustry #RawenzCars