Since 1990, assembly and manufacturing of various Peugeot passenger cars (including Peugeot 405 GL, Peugeot 405 GLX, 1580 cc and 2000 cc, and Peugeot 405 GLX automatic 2000 cc) have been accomplished in the passenger car production lines. SAPCO company was entrusted with the task of having the parts of this product made in Iran in 1994. By March 1998, the items omitted from the list of imported parts reached 77% by the endeavors of the Iranian craftsmen. Taking into account the items which have been announced to Peugeot in France as items to be omitted from import lists, the said figure will reach 89%. The studies indicated that from the parts used in Peugeot 405, 35 items had to be changed substantially, and a further number of 84 completely new parts, including 17 body parts and 67 trim parts had to be designed and manufactured. This made the basis for the intense activities of the designers and engineers of Iran Khodro Research Center.
All the computations and implementation affairs of the project were performed in Iran Khodro Research Center and the Peugeot 405 Limousine was realized as the first achievement of the Research Center. The precision and subtleness practiced in the manufacture of this automobile was of such a high level that surprised international automobile experts. The ability of the Iranian craftsmen was put at world judgment by allocation of a forum in the Peugeot Museum of France to the Limousine made in Iran. The news was reflected extensively in international media. A French periodical wrote about the success of Iran under the title "When Peugeot checkmates Mercedes." One of the most successful medium class Peugeot automobiles is Peugeot 405, nominated as the automobile of the year by many of the creditable automobile journals of the world in 1988. Peugeot 405, marketed in the two GL and GLX models, is one of the best automobiles assembled in Iran. The body of Iran Peugeot 405, at the same time as having beauty and ample space, has as low as 31% air resistance with its aerodynamic design.