01 October 2005
TEHRAN: New Paykan (NP) will be available in Iran's demanding auto market in 2007, reported ISNA on Saturday.

It said the giant carmaker Iran Khodro will produce the new model using Peugeot 206 platform.

The New Paykan, with a 1.4-liter type III national engine and Peugeot 206 interior design, will be produced simultaneously in Iran and China. Designing the NP is expected to cost Iran Khodro some 1.6 trillion rials. The price tag is reportedly 80 million rials.

Iran Khodro launched the New Paykan design project in 2001 in cooperation with Italian companies. However Peugeot opposed its production and refused to approve the necessary licenses for use of its popular model's platform.

With the conclusion of a deal on the multibillion-euro L90 project with Renault by Iran Khodro and Saipa of Iran, the French company agreed to assist Iran design the saloon model of Peugeot 206--the Aryan.

According to ISNA, it is widely expected that Peugeot will also give the green light for the New Paykan project.

This is while Minister of Industries and Mines Alireza Tahmasbi said earlier that Peugeot Aryan, which made its first public presentation at Frankfurt Motor Show last month, will have changes in its exterior to
differentiate it from Peugeot 206 and reduce Iran Khodro's dependence on the French automaker for exporting the sedan.

The minister said the car will have an independent identity, adding that Aryan could be exported easily even if the French company fails to keep its export-related promises.

Iran Khodro unveiled the model on September 14. The car has been designed in cooperation with Peugeot of France and an Italian company.

Iran Khodro decided to produce the Aryan following the French company's opposition to the production of the new Paykan.

Aryan will be marketed with over 50 percent of domestic parts.

The 110HP car is to be exported to 47 countries in cooperation with France's PSA and is expected to be priced at around $20,000 in the Iranian market.

In a joint venture valued at $92 million, designers have transformed the car from a compact hatchback to a saloon offering more luggage space.

Production is set to start in January 2006, with output eventually reaching 120,000 units per year.

France's Peugeot already dominates the Iranian market with the 405 and 206 models, as well as engine designs for other models.

© Iran Daily 2005