After several unsuccessful attempts to make FIAT automobiles, the most serious step towards production of automobiles was taken by establishment of Iran National Factories (Iran khodro, public joint stock company) and presentation of Paykan passenger car on 17 August 1962. Iran National was commissioned to manufacture the latest model of HILLMAN under the name of Paykan GT.
In 1966, Iran Khodro was licensed to produce various four-cylinder passenger cars, and, after installation of the Paykan production line, it started manufacturing with the initial capacity of 6000 units per annum under license of ‘Rootes’ and then ‘Chrysler’.
The first automobile which was made in 1967, was Paykan, presented in two models of Deluxe and standard. In the same year, Paykan pickup and Paykan taxi were added to the production line. In addition, the commercial Paykan was presented to the market in the next two years and the Automatic Paykan came into being in 1970. Within the years 1971 and 1972, six models of Paykan were being manufactured: Deluxe, Pickup, Standard, GT, Taxi, and Automatic.
After closedown of Talbot production lines and cancellation of the contract under which they provided the power train parts, it was decided to continue production of Paykan in the country in 1985.
After extensive research, changing the power train of Paykan was approved. Based on a contract, the French company Peugeot agreed to provide Iran Khodro with 60,000 engines and suspension systems of Peugeot 504 per year for installation on the present Paykan body for six years.
Attempt to manufacture locally Paykan parts started in 1991 by establishment of the Self-Sufficiency Unit of Iran Khodro. The activities were later centralized in SAPCO in 1993. By realization of the anticipated plans and increase of production capacities of part makers up to 120,000 units a year, now we are producing almost 98% of the parts needed for Paykan 1600 in Iran.
After installation and commissioning of machinery purchased from Talbot Co. of England and producing the necessary parts in Iran, the production of Paykan 1600 after sometime recession was resumed in September 1992.
As the largest vehicle manufacturing industrial complex in Iran, Iran khodro decided to establish a research center in 1994, aimed at acquiring automobile design and engineering know-how. In this line, the project of design and manufacturing of the first national vehicle, titled New Paykan, was put on schedule. During the past years, various models of Paykan have been produced – Deluxe (1600 cc, 1725 cc, 1800 cc), Standard, GT, and Taxi.
Text taken from (Paykan producer) Iran khodro Industrial Group’s website.