Peugeot’s new 206 sedan will be built by Iran Khodro in Teheran for export from March 2006.

The four-door model – launched over seven years and five million units after the hatchback versions first arrived – will be built for the Iranian market from January.

Other 206s are manufactured or assembled at six sites worldwide at a daily rate of production of about 3,100 units.

The sedan is 4,190mm long, 350mm longer than the hatchback.

It will be launched with a choice of two trim levels and two petrol engines – a 55kW 1.4 litre with manual gearbox, and 80kW 1.6 with the choice of manual or automatic transmission.

Peugeot’s long-awaited 206 sedan derivative is the latest example of a European maker extending its model line to suit markets where buyers prefer small sedans to hatchbacks. Such markets are mostly in southern Europe, the Middle East, Central and South America and parts of Asia including China.

Among others, Renault and General Motors also sell ‘booted’ versions of their popular hatchbacks – the Clio and Corsa respectively – in these markets.