Iran possesses a significant domestic automotive industry, primarily driven by large state-owned or semi-private companies that form the core of Iran Car Brands. The sector has a long history of assembly and licensed production of foreign models, especially from European and Asian manufacturers. However, due to various geopolitical factors and sanctions, the industry has increasingly focused on localizing production and developing indigenous models.
The two dominant players among Iran Car Brands are Iran Khodro (IKCO) and SAIPA. IKCO, established in 1962, is Iran’s largest automaker and has historically produced popular models like the Paykan (based on the Hillman Hunter) and various Peugeot models under license, such as the 405 and 206. More recently, IKCO has introduced its own designed models like the Samand, Dena, and Tara, aiming for greater self-reliance. SAIPA, founded in 1965, is the second major player, known for producing models based on Citroën and Kia designs in the past, and now developing its own vehicles like the Saipa Shahin and Tiba.
Beyond these two giants, other smaller manufacturers and assemblers contribute to the Iranian market, often through partnerships with Chinese car brands which have become more prominent due to international sanctions limiting Western engagement. The industry faces challenges related to access to modern technology and foreign investment but continues to be a crucial part of Iran’s economy and employment. For more detailed insights, explore World-Wide Q&A.