Egypt is stepping up efforts to localise electric vehicle manufacturing and automotive component production, targeting annual output of up to 100,000 vehicles by 2032 as it seeks to reduce imports and strengthen its domestic automotive industry.
Prime Minister Mostafa Madbouly reviewed the strategy with Industry Minister Khaled Hashem and other ministry officials. According to Daily News Egypt, the government sees automotive manufacturing, particularly electric vehicles, as an opportunity to serve domestic demand and develop export markets.
Localising Automotive Components
The government is pursuing several partnerships to increase domestic production. An agreement involving an international company, El Araby Group and the Arab Organization for Industrialization (AOI) covers seven metal automotive components, with combined annual capacity of eight million pieces.
Other initiatives include establishing a vocational school for mould and die manufacturing, developing local battery supply for MCV buses and exploring domestic electric motor production with the AOI.
The ministry is also discussing battery supply arrangements with international companies for vehicles manufactured in Egypt.
EV Production Plans and Infrastructure
Hashem said an international automaker plans to begin producing three electric vehicle models in Egypt in 2027, with annual production targeted at 100,000 units by 2032. The company aims to increase local component content from 10% initially to 27% by that year.
Meanwhile, China’s Dongfeng has started manufacturing electric vehicles through a partnership with SN Automotive and state-owned El Nasr Automotive Manufacturing Company, using El Nasr’s production facilities.
The government also plans to upgrade automotive component testing capabilities and the Engineering Industries Technology Centre in 10th of Ramadan City to support local suppliers.
Alongside manufacturing, the ministry is working with international companies to develop charging stations and supporting infrastructure. It is also considering additional incentives for EV production under the National Automotive Industry Development Programme.
The strategy is intended to strengthen Egypt’s automotive supply chain while supporting the country’s transition towards cleaner transport and expanding opportunities for regional exports.