The part maker will cooperate with Germany’s Bosch and Valeo of France is to supply auto parts under licensed production, local automotive website Khodro Nevis reported.
Bosch, the world’s largest spare parts supplier, will help Saze Pooyesh, a subsidiary of the Iranian company, produce oxygen sensors, electrical accelerators, electrical valves and engine control units (ECU).
Talks are underway to sign a joint venture between the Iranian and German company in the near future, Financial Tribune reported.
As per the agreement, Valeo will share expertise on production of ignition coil and charging system technology under a joint venture. It will also help Ezam supply a portion of its products to the international market and foreign automakers.
The Ezam group with 12 manufacturing companies is involved in the auto parts industry since 1993.
As per the new contracts Ezam will be able to supply key auto parts to domestic automakers estimated at 3 million parts per year.
The government in Tehran has adopted a new approach and welcomes the presence of major international brands in the growing auto sector. Foreign companies in diverse fields are slowly entering the 80-million-strong Iranian market after the signing of the nuclear agreement in 2015 that resulted in the lifting of economic sanctions.
Bosch was one of the first manufacturers showing interest in investing in the Iranian market in the post-sanctions era.
Other international auto parts makers such as France’s Mecaplast Group, Germany’s Continental are already active in the domestic auto sector.