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Production operated at a pace of 6,000 units a year from 1967. Production capacity is now running at 120,000 units per year with 98% of the parts supplied by Iranian companies.
The Paykan was due to be replaced in the late 1970s when the Islamic revolution occurred and the international investment necessary disappeared.
In an agreement with Peugeot, Iran Khodro began producing the Peugeot 206 in October 2001, at a rate of 120,000 units a year for ten years. A minimum of 65% of domestic (Iranian) content.
In 1996, it was decided to redesign the ancient Paykan 1600. Codenamed X7, the Samand was the culmination of this program. With the assistance of Peugeot, among others, Iran Khodro launched the Samand in late 2001. Production is slated to start at 5,000 units per year rising to "over 200,000 units within five years."