The carmaker said a first version of the car would be equipped with an EC5 engine and a manual transmission while later models would be supplied with an automatic gearbox and a turbocharged engine.
The IKCO said the K132, a sedan based on its Samand model, will hit the markets in February as a first car that would rely up to 92.5 percent on Iranian suppliers for parts and designs.
It said other options on the manual K132 will include electric power steering, modern braking systems, two front-seat airbags and cruise control.
On fuel efficiency, the model would be equipped with Euro-5 emissions-control technology and its average consumption will be 6.7 liters per 100 kilometers, said the IKCO.
The K132 had been unveiled in a ceremony in February in Tehran.
Its planned mass production will come despite the American sanctions that have caused problems for carmakers in Iran as they have struggled to access spare parts and technologies needed to finish a series of models jointly developed with Western companies.
Homegrown efforts by the IKCO and Saipa, Iran’s second largest carmaker, have helped fill a void created by the sanctions as they have introduced new models to respond to a growing demand for modern and efficient cars in Iran.