Expected in Russia
In Moscow, IKCO (Iran Khodro) introduced the Tara sedan while Saipa showcased the Shahin sedan. The Tara model is moving toward certification and could reach dealerships before spring. IKCO Tara has been on the market since 2020 and is the closest model to starting sales here. Its design bears a close resemblance to the Peugeot 301, including several shared body panels, doorways, and the same platform. It sits slightly larger than the Lada Vesta and packs a TU5 1.6 engine producing 115 horsepower. The transmission options include a five-speed manual and a six-speed automatic similar to the Japanese Aisin. The anticipated price starts around 1.5 million rubles.
IKCO Tara
Saipa Shahin
Shahin has been on sale since 2021 and measures in near the size of the Vesta. Its chassis relies on a licensed Toyota XP90 platform, with ties to the second-generation Yaris up to 2013. The Shahin uses a 1.5-liter, 110-horsepower gasoline engine with eight valves, complemented by turbocharging in some variants. A CVT-equipped version was shown at the auto fair, though a manual remains an option. Equipment highlights include a 7-inch infotainment display, air conditioning, a rearview camera, cruise control, and a tire pressure monitoring system. The expected price starts from about 1.2 million rubles.
Iran Khodro: assortment
Iran Khodro translates to Iranian car and was founded just before AVTOVAZ, with its first vehicle produced in 1966. It is part of a vast IKCO group that also produces trucks, buses, rail vehicles, engines, and related components. The group produces roughly half a million vehicles annually across six plants and holds substantial potential for broader market penetration in Russia over time. Current production includes more than a dozen passenger models, with some parts produced under license from Peugeot. Technologies and platforms were adopted after collaboration with the French partner, with some assembly sourced from other brands.
From 2006 to 2009, the Samand sedan, a Peugeot 405-based model, was sold and remains in production today in evolved forms named Soren, Dena, and Dena +. The lineup also features the Runna (previously the Peugeot 206), two Haima crossovers (S5 and S7), the Dongfeng H30 Cross hatch, and the Arisun compact pickup, built on older chassis with updated exterior panels and features from the Peugeot 405 lineage.
Recently, two crossovers with IKCO styling named Rira and a simplified Ray were introduced. Front-wheel drive is standard, reflecting a shared PF1-derived platform renamed IKP1. These vehicles are linked to the Peugeot 2008, and mass production is planned for the coming year.
Motorbikes and boxes
The models derived from the French designs continue to use the TU5 1.6 and XU7 1.8 engines in updated forms. The TU5 engine, as installed in local markets, features a cast iron block, 16 valves, hydraulic lifters, and a reputation for reliability with a service life around 300 thousand kilometers, suitable for overhaul.
The XU7, with an aluminum block, is more demanding and less forgiving in extreme cold; spare parts availability is improving but remains a consideration. Ignition coils and other components have shown durability issues on earlier French builds, a trend that could repeat in Iranian derivatives.
Iranian engineers have developed the EF engine family, created in collaboration with the German firm FEV Engine Technology. The lineup includes gasoline turbo and diesel options, and all powertrains are locally produced from casting to electronics. Many engines were originally designed for natural gas adaptation, reflecting Iran’s extensive methane gas network.
Gearboxes are a mix of Peugeot-based units and Chinese-sourced modules, with many vehicles still relying on five-speed manuals. Hydraulic automatics are seen more as premium equipment options.
Saipa: model range, engines and gearboxes
Saipa ranks as the second-largest Iranian automaker. It began as a Citroën assembler during the Khodro Peugeot era, later expanding into engines and transmissions, and developing its own powertrains, including a variator. The company expanded through acquisitions such as Zamyad and diversified into models from several brands, including Japanese and Korean partners.
Today’s lineup includes the Tiba sedans, the updated Saina, Shahin sedans, and the Quik hatchback, all built on licensed Toyota platforms.
Quality and prices
Most Iranian cars reflect a design language reminiscent of budget Ladas from a decade ago. Electronics have improved in newer models, but overall materials and design remain straightforward and affordable. There are persistent concerns about build quality and individual components.
In terms of pricing, mass-market Iranian models tend to be cheaper locally, with the rial-denominated price equivalent to roughly 500-600 thousand rubles. When considering delivery, customs, recycling fees and VAT, the cost can exceed a million rubles, placing a vehicle of comparable size and features to the Grant on par with the Vesta.
One potential route for Iranian cars entering the Russian market is under the Azerbaijani label Khazar. The AzKron assembly facility in Neftchala has been assembling many IKCO models since 2018, with one-quarter ownership by IKCO.
IRAN IN NUMBERS
Iran covers a broad spectrum of vehicle production with millions employed in the industry. A dozen or so passenger-car manufacturers participate, many as joint ventures with European and Asian partners.
- Iran ranks 17th globally in both land area and population, about 84 million people.
- Road length places Iran 27nd, with a road-network density higher than Canada and many other nations; major cities are connected by well-maintained highways. Hard-surface roads account for 87% of the network, compared with 61% elsewhere.
- Motorization sits in the eighth or tenth percentile globally, between Jamaica and Uruguay.
- The average vehicle age hovers around 20 years.
- More than a million new cars are sold each year.
- About a third of the fleet bears the Peugeot badge.
- In 2021, the Saipa Tiba stood as the best-selling model with over 150,000 units sold.
The advantages and drawbacks of Iranian cars for Russia are discussed here. Commentary can be found on Odnoklassniki under the wheel section of the publication series. [citation: Odnoklassniki]