The Paykan is a car built by the Iranian company Iran Khodro, based on the 1966 Hillman Hunter, the Pakyan came about after the Iranian government set up the nationally owned car factory to produce cheap cars for the Iranian people.
A deal was struck with the British Rootes group, who owned Hillman, to send CKD kits of the Hunter to Iran for local assembly. In 1978 Chrysler who now owned Hillman was in financial difficulties and sold out their European operations to Peugeot. In 1979 Peugeot Shut down the Hunter production lines and sold the tooling for the bodies along with the rights to the design to Iran Khodro allowing the car to be fully built locally in Iran.
With the engine getting outdated, Peugeot agreed to export their 504 engine for use in the Paykan, from the early 90s the 504 engines were being made in Iran bring the total of locally made parts up to around 98%.
The Paykan is still being sold as a ute in Iran with the sedan version phased out early in 2005 after 38 years, very little changed with the Paykan over the years, despite this it is the most popular car in Iran with 40% of the population owning one perhaps due to its $7700AU price tag.
Tha Paykan has been replaced by an all new Rover designed car called the Samand that features some Peugeot 405 mechanicals. They also produce the Peugeot 405 locally in both front and rear wheel drive as well as a model with an updated 406 style front and rear. Iran Khodro is signing up export deals and setting up factorys in China, Africa and former Soviet states with plans to sell 1 million cars a year by 2011.