Beijing Automotive Group (BAIC) and Egyptian International Motors (EIM Group), a subsidiary of Alkan Holdings, have inked an agreement to establish a new factory for electric vehicle manufacturing, according to a statement on October 27.
The new factory, which will span 120,000 square meters and will commence operations by the end of 2025, targets the production of 20,000 electric cars in its first year, with plans to maximize production to reach 50,000 cars by the end of the fifth year.
The project plans to encompass 48% of local inputs, with plans to increase this figure to reach 58%, the statement added. The factory is also projected to create around 1,200 new job opportunities.
The Egyptian Minister of Industry and Transport, Kamel El-Wazir, emphasized the ministry’s commitment to enhancing local production and exporting, particularly within the Middle East and Africa.
He underscored the ministry’s readiness to support international automotive companies to expand within the Egyptian market thereby fostering investment and creating job opportunities for youth.
El-Wazir stressed the ministry’s commitment to swiftly bringing the project to life, with the General Authority for Industrial Development securing the necessary land and accelerating the licensing process.
He emphasized that this partnership aligns with President Abd El-Fattah El-Sisi’s vision to transform the Egyptian market into a regional industrial hub by localizing car manufacturing and maximizing the private sector’s contribution to the industry.
Boosting local production
The Egyptian government has been keen on fostering local car production. El-Wazir announced in July that the government plans to offer incentives to enhance domestic production and attract global companies to the Egyptian market.
This builds on Egypt’s strategy to localize the automotive industry, initiated in June 2022. El-Wazir noted that “the strategy aims to fulfill the local market’s needs and boost exports by achieving economies of scale to be competitive in the automotive industry.”
The strategy encompasses the Egyptian Automotive Industry Development Programme (AIDP), which establishes the necessary framework to enhance existing car assembly and manufacturing capabilities while promoting new investments in the sector.
Notably, Mercedes Benz has also revealed its plans to increase its production in the Egyptian market by 30% in 2025, CEO Stefanie Volz noted in October, according to a ministry statement. Volz added that the Egyptian market is very promising for the auto industry given its strategic location as a hub for African markets.
In September 2023, the Egyptian Cabinet granted the golden license to private company EgyptSat Auto allowing the company to build and operate an electric vehicle (EV) factory by the end of 2024.
The factory, spanning 50,000 square meters in the 10th of Ramadan City, is set to produce electric passenger cars, buses, motorcycles, and charging stations. It’s also expected that the EgyptSat Auto project will create 500 job opportunities.
