Iranian automobile company Iran Khodro (IKCO) has launched 175 projects to engage domestic auto part manufacturers, according to media reports on Sunday. IKCO entered an agreement last week with Iran’s Tejarat Bank to provide financial support to small and medium-sized domestic auto component producers.
The push for local auto parts is expected to create employment and diminish Iran’s dependency on foreign imports, apart from conserving forex reserves.
The auto company has reportedly already signed numerous agreements with industrial units to produce 32 key auto parts.
The project move involves production of wide-ranging key parts for passenger and commercial vehicles at IKCO auto production centres. This is expected to reduce demand for import of auto parts and curb capital flight by €246mn ($276mn).