Iran's third biggest auto producer, Pars Khodro (formerly GM Iran), has unveiled its first fully electric Chinese compact car, the Leapmotor T03, at the country's Automotive Industry Transformation Exhibition, local automotive media company Akharin Khodro reported on July 21.

The Chinese-made compact hatchback, rebadged as the "Pars Khodro Electric Hatchback," is powered by a front-wheel-drive electric motor producing 107 horsepower and 158 Nm of torque. It features a 41.3 kWh lithium-ion battery pack, offering a range of 403 kilometres (250 miles) based on the NEDC standard.

Charging times for the T03 are 3.5 hours with standard chargers and 36 minutes with DC fast charging, making the low-cost vehicle one of the first mass-produced electric vehicles to enter the heavily controlled Iranian automotive market. 

The introduction of the small a-class vehicle raises questions about Iran and China’s compliance with international sanctions, which restrict the import of certain technologies and vehicles.

The sale of this car in Iran could potentially violate auto sanctions levied on the country by Donald Trump in 2019, though the full implications remain unclear about how much Stelantis is privy to the deal between its subsidiary Zhejiang Leapmotor Technology Co (Leapmotor) and Pars Khodro.

On July 24, bne IntelliNews reached out to Stellantis and Leapmotor for comment, the company has not yet responded to questions on the potential launch of the models in Iran. 

Pars Khodro, now a subsidiary of Iran's SAIPA Group, created a joint venture with Citroen 50 years ago under the former regime of the Shah, but has not yet announced pricing or availability for the T03 in the Iranian market.

The company's decision to import and potentially sell this vehicle signals a shift in Iran's automotive landscape and its approach to international trade restrictions following its growing ties with China.

The rush to sell electric vehicles is supported by the previous Raisi government’s push to reduce petrol consumption, which is compounded by the worsening pollution across the country, partly due to the use of old petrol vehicles.

Pars Khodro also appears to be going all-in on different Chinese models this year, with the unveiling of the Roewe eRX4 SUV set to go on sale, the successor to Britain’s now defunct Rover brand is set to be a popular item in Iran with SAIC’s other vehicles including MG models being on sale in the country for several years.

To compete with the growing demand for small, affordable electric vehicles, another company, Kerman Motor, has unveiled the JAC E30X, which does not currently have a presence in European markets.

Meanwhile, Mammut Khodro, more famous for its refrigerated trucks in Iran, has unveiled the SERES crossover, which looks similar to a Porsche Cayenne, to add to the broader market of vehicles on offer in the Iranian market.

Arian EV Company, one of the pioneering companies in importing and producing electric vehicles in Iran, is another company that has unveiled two Leapmotor car models, which include the mid-size crossover SUV, the C11, and the family-friendly sedan, the C01.

The importer announced the price of the C11 model, which comes in three versions: fully electric, priced at IRR22bn ($38,029); hybrid plugin 2WD, priced at IRR27bn ($46,672); and plugin hybrid AWD, priced at IRR29bn ($50,129), as reported by Asbe-Bokhar.

The C01 model is also available in two versions: fully electric, estimated to be priced between IRR22bn ($38,029) and IRR27bn ($46,672), and plugin hybrid, estimated to be priced between IRR15bn ($25,929) and IRR18bn ($31,114), according to Pedal.

The Automotive Industry Transformation Exhibition, where the vehicle was unveiled, runs from July 21 to July 24, 2024, in Tehran.

The auto event serves as a platform for both domestic and international automakers to showcase their latest offerings to the Iranian market.