Inside Iran’s Auto Industry: Best-Selling Cars in Iran

Iran’s automotive industry stands distinctively apart from the global market. Unlike most countries that depend heavily on imports, Iran takes pride in manufacturing cars entirely from locally sourced materials. Prominent Iranian brands such as Iran Khodro and SAIPA have successfully established themselves as completely homegrown automakers, thriving without relying on imported components.

Following our previous exploration of the most popular cars in Pakistan, this blog delves into Iran’s automotive scene. We’ll highlight six of the best-selling Iranian-made vehicles currently in production. For each model, we’ll discover why local buyers prefer them, examine their key specifications, and gain insights into Iran’s unique automotive trends.

Saipa Atlas – Budget Hatchback Hero

The Saipa Atlas is a compact hatchback that has become a common sight on Iranian roads. The Atlas is essentially the modern successor to the old Kia Pride-based models. It’s hugely popular among Iranian consumers for one simple reason: affordability. With the discontinuation of the Pride, SAIPA needed a cheap, efficient city car – and the Atlas fits the bill.

Its low price and decent fuel economy make it an attractive first car for young families and commuters on a budget. It’s selling very well, and many see it as the car that will fill the gap left by the Pride/Tiba family. In short, the Atlas is popular because it’s the least expensive way to get a new car in Iran, with easy maintenance and widely available parts.

Here are some key specs:

Iran Khodro Samand – National Sedan

Iran Khodro’s Samand is often referred to as Iran’s first “national car,” and it holds a special place in the market. Launched in the early 2000s as a successor to the venerable Paykan, the Samand has been popular for decades – and impressively, it’s still in production (in facelifted forms like the Samand Soren). Iranian consumers appreciate the Samand for its roomy interior and robustness. 

Over the years, Iran Khodro kept improving it with better engines and features, so even though the design is dated, it’s proven reliable for local conditions. The Samand has also been a favorite of taxi drivers and government fleets due to its simple mechanics and availability of parts. 

Key specifications of Iran Khodro Samand:

IKCO Dena – Iranian Family Car

The Dena is Iran Khodro’s attempt at a more upmarket national sedan, and it has struck a chord with buyers looking for style and power in a locally-made car. Introduced in the mid-2010s, the Dena Atlasly became one of IKCO’s best-sellers due to its sharp design, larger size, and relatively powerful engine. In fact, the turbocharged version (Dena Plus Turbo) is often cited as one of the best Iranian cars on offer today. 

Iranian consumers appreciate that the Dena offers a bit more luxury and tech than older models – things like improved interior materials, a multimedia touchscreen, and better safety features. It’s also known as the most expensive car made by IKCO (still far cheaper than any import), yet it sells very well. Enthusiasm for the Dena has kept it near the top of the sales charts; at one point it was IKCO’s top model. It’s essentially a heavily facelifted evolution of the Samand’s platform, but you wouldn’t guess that from its modern looks. 

For many in Iran, the Dena is a home-grown alternative to a Toyota or Hyundai sedan – offering decent comfort and performance at a fraction of the cost (thanks to import bans).

Main highlights:

Peugeot 207i (IKCO) – Little Lion 

It might carry the French Peugeot badge, but make no mistake: the 207i is as Iranian as they come, built by Iran Khodro for years. Essentially a locally produced, facelifted Peugeot 206+, the “207i” has long been hugely popular among younger drivers and city-dwellers in Iran. 

Why is it so popular? For one, it offers a compact size and sporty flair that other domestic cars don’t. When the Peugeot 206 first hit Iran in the early 2000s, it was seen as a modern, stylish hatchback – and its legacy lives on in the 207i. Iranians love that it’s nimble in traffic, easy to park, and has a bit of Euro-style chic. 

Over time, IKCO kept the model alive by updating the interior and tech (adding things like a touchscreen and even a panoramic roof in some versions). 

Key specs of Peugeot 207i:

Saipa Shahin – Newcomer with Turbo Power

The Saipa Shahin is one of the newest sedans from SAIPA and represents a bold step forward for the Iranian auto industry. Launched in late 2020, the Shahin is a compact C-segment sedan that immediately drew attention for its modern design and the fact that it’s turbocharged. 

Iranian consumers had high hopes for the Shahin – and largely, it has delivered in popularity. Buyers are attracted to the Shahin’s contemporary look (it’s arguably one of the best-looking Iranian cars, with a sleek body and a distinctive front grille) and its feature set. 

It offers conveniences like a push-button start and touchscreen that were rare on earlier domestics. Affordability is also key: the Shahin provides a lot of car for the money (it undercuts similar foreign sedans significantly on price). 

Key specifications:

Iran Khodro Tara – New Generation Family Sedan

The Iran Khodro Tara on display – a modern compact sedan based on Peugeot underpinnings. The IKCO Tara is a very important model for Iran Khodro, as it represents the company’s future. Introduced in 2021, the Tara is essentially Iran’s domestically-built version of the Peugeot 301/Citroën C-Elysée. 

Among Iranian consumers, the Tara has gained traction for being a truly modern car by local standards – it was designed in the last few years and comes with contemporary safety and comfort features. In terms of popularity, the Tara has been steadily climbing the charts; it broke into the Top 10 in 2023 and kept rising, reaching 7th in production by 2024. Buyers like its European pedigree (knowing it’s based on a Peugeot gives some confidence in the engineering) and the fact that it’s larger and more advanced than the trusty Samand or Dena. 

The Tara offers a roomy cabin, good fuel efficiency, and a more polished look that appeals to middle-class families and even fleet buyers. With the aging Peugeot Pars/405 discontinued in 2024, the Tara is essentially the successor carrying the torch for IKCO’s sedan lineup. 

Key features ofI ran Khodro Tara :

Let us know what you think about these Iranian cars?

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