Iran’s privately-owned Bahman Motor has announced the arrival of the Chinese Hongqi H5 luxury sedan with a final price of IRR41.95bn ($42,289 free market rate), Khodro Bank reported on September 15.

Chinese car manufacturers dominate the Persian Gulf's imported vehicle market, with brands like Chery, JAC, BYD, and MG gaining strong footholds through aggressive pricing, technology transfer, and local regional assembly partnerships. 

In recent years, due to the growth of the Chinese domestic Iranian auto market, the severely damaged local car market in the form of Iran Khodro (now privatised) and SAIPA (soon to be privatised) has become a prime target for Chinese car companies.

That late-night sale of the IKCO to Crouse Group, which caused a stink in power centres, indicates the current Pezeshkian administration has admitted defeat in trying to prop up the massively indebted car producer. 

Middle Eastern and Asian markets also prefer the sedan model over traditional hatchbacks and station wagons, with Chinese sedans offering both cash and credit purchase options with repayment periods of 12, 18, 24 and 30 months.

The Hongqi H5 measures 4,985 millimetres in length with a 2,920-millimetre wheelbase, dimensions larger than typical D-class sedans that place it in the "ceremonial vehicle" category. 

The vehicle's exterior design allegedly comes from Giles Taylor, former Rolls-Royce design director, with the vehicle borrowing an imposing grille with vertical chrome lines, narrow LED headlights, and stretched body lines. This design language combines authenticity, luxury and modern technology.

The H5 features a two-litre turbocharged engine with direct fuel injection technology producing 222 horsepower at 4,500-5,000 rpm and 340 Newton-metres of torque between 1,650-4,500 rpm.

Power transfers to front wheels through an eight-speed automatic gearbox manufactured by Japanese company Aisin.

In 2025, Chinese competitor Chery stands out as the only top-10 brand posting positive sales growth (up 8%), while most Iranian producers show declines; electric and hybrid Chinese models, such as Leapmotor T03, are being locally assembled in collaboration with Iranian companies.

To make matters worse for Tehran Inc., Iran's locally produced car market continues to suffer, with IKCO announcing it would bring back a new version of the 30-year-old Peugeot 206 platform (under the guise of the 207 moniker) with little to no changes from the last time it produced the vehicle.