Iran Khodro, Iran's largest car manufacturer, has announced the resumption of production of the Peugeot 207 sedan following a five-year hiatus, with reports dated 11th August indicating that the vehicle will return with updated features and standards.

Since its privatisation earlier this year, the company has been able to pursue profit-oriented activities without intervention from the Iranian government.

Iran Khodro gained recognition for producing the Paykan under licence from the Rootes Group and later for manufacturing the Peugeot 405 and 206, becoming the last country worldwide to continue production of these older models.

The 207SD, which was previously produced from 2016 to 2020, is scheduled to return to production with enhanced capabilities and modern standards, according to the company.

The Peugeot 207 sedan represented an upgraded version of the Peugeot 206 sedan. It was unveiled in December 2016 and introduced to the market in 2017, featuring a four-speed automatic gearbox.

Despite initial market interest, production was discontinued in 2020 due to the outdated transmission and absence of contemporary features.

Iran Khodro has stated that the new iteration of the 207 sedan will comply with 85 regulatory standards.

The vehicle is expected to be powered by the same TU5 Plus engine, producing approximately 115 PS, but will reportedly be equipped with a new six-speed automatic gearbox.

Additional updates are anticipated to include Euro 5 emissions compliance, improved fuel efficiency compared with the previous model, and the integration of new comfort and safety features.

In accordance with prevailing standards, the new Peugeot 207 sedan is required to include features such as:

- Advanced emergency braking system
- Electronic stability control
- Lane departure warning
- Tyre pressure monitoring system
- Daytime running lights
- Front and side airbags
- Touchscreen display
- Cruise control
- Reverse sensors

Visually, the sedan differs from the 206 primarily in its exterior design, notably the bumper and light clusters.

Iran Khodro has indicated that the upgraded vehicle will meet contemporary automotive safety and efficiency standards while maintaining its appeal among Iranian consumers.