The Paykan was based on the 1966 Hillman Hunter, which was originally designed and manufactured by the British Rootes Group. The design was introduced to Iran by Mahmoud Khayami, co-founder and, by then, owner of the Iran Khodro (then called "Iran National") company and factory, who accurately predicted that Iran was in need of a simple "no-frills" automobile within the price range of ordinary people.