Iran's major carmaker Iran Khodro (IKCO) has introduced 175 projects to engage domestic auto parts producers, Eghtesad Online news website reported on June 28.

To this end, Iran's Tejarat Bank has agreed with the IKCO to financially support small and medium-sized domestic auto parts producers, CEO of IKCO Farshad Moqimi was quoted as saying.

The projects include production of a large number of key parts for passenger and commercial vehicles at IKCO auto production lines, according to the report.

Localization of auto parts will create jobs and minimize the country's dependency on foreign sources, besides saving forex reserves, Moqimi noted.

The projects are expected to curb capital flight by 246 million euros (276 U.S. dollars), added Moqimi.

Also, Reza Dolatabadi, the head of Iran's Tejarat Bank, said Thursday that the bank will help develop the auto industry and strengthen its role in the auto sector.

According to IKCO, the company has already signed several agreements with domestic industrial units and small and medium-sized enterprises to mass produce 32 key auto parts.