An Iranian company will launch production of automobile parts in Iran in cooperation with two leading German and French companies, said a report.

According to a joint venture contract, Iranian Ezam Automotive Parts Group will technically cooperate with German Bosch Company as well as French Valeo to supply automotive parts, added the Iran Daily News report.

Bosch, the world's largest spare parts supplier, will help the Iranian company produce oxygen sensors, electrical accelerators, electrical valves and engine control units (ECU), it said.

As per the agreement, Valeo will transfer the know-how for production of ignition coil and charging system technology.

The Ezam group consists of 12 large manufacturing companies and has been involved in auto parts industry since 1993, added the report.