Iran restarts production of Peugeot 207 sedan after five-year hiatus

Iran restarts production of Peugeot 207 sedan after five-year hiatus
Iran restarts production of Peugeot 207 sedan after five-year hiatus. / bne IntelliNews
By bnm Tehran bureau August 11, 2025

Iran Khodro, Iran’s largest carmaker, has announced the resumption of production of the Peugeot 207 sedan after a five-year hiatus, claiming the vehicle will return with new features and updated standards, Zoomit reported on August 11.

Since being privatised earlier in the year, the company has been able to follow profit-making activities without the intervention of the Iranian government. The company became famous for producing the Paykan, under license from the Rootes Group, and later the Peugeot 405 and 206, becoming the last country on earth to produce the old models. 

The 207SD, which was previously produced from 2016 to 2020, will return to the production line "with new capabilities and modern standards", the company said.

The Peugeot 207 sedan was an upgraded version of the Peugeot 206 sedan that was unveiled in December 2016 and entered the market from 2017 with a four-speed automatic gearbox.

Despite initial reception, the old gearbox and lack of numerous options led to production being halted in 2020.

Iran Khodro said the new version of the 207 sedan will pass the 85 standards requirements.

The new 207 sedan will likely be equipped with the same TU5 Plus engine with about 113 horsepower, but will apparently use a new six-speed automatic gearbox.

Euro 5 emission standards, more optimal fuel consumption compared to the previous version, and new comfort or safety options will be among other likely changes to the 207 sedan.

Based on the previous standards requirements, the new version of the Peugeot 207 sedan must be equipped with features including an advanced emergency braking system, electronic stability control, lane departure warning, tyre pressure monitoring system, daytime running lights, front and side airbags, touch display, cruise control, and reverse sensors.

The vehicle's exterior design differed from the 206 sedan with changes to the bumper and lights sections.

Iran Khodro said the upgraded vehicle will meet modern automotive safety and efficiency requirements while maintaining the model's popularity among Iranian consumers.

 

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