Egypt enters important negotiations with auto industry giants Cars

The Egyptian government is currently adopting intense strategic moves aimed at creating a qualitative shift in the engine manufacturing sector, going beyond the ambitions of traditional “local assembly” to building an integrated industrial base that addresses global markets.

Prime Minister Dr. Mostafa Madbouly revealed that negotiations with two major international car manufacturers have reached very advanced stages to begin launching huge local production lines.

Madbouly stressed, during a press conference, that building a strong national automobile industry requires reaching economic production rates ranging between 100,000 and 200,000 cars annually for one company, which will allow Egypt to truly compete in regional and international markets and reduce the cost of the final product for the local consumer.

The current government vision is based on providing an exceptional and unprecedented incentive package to attract major industrial entities, with a special focus on localizing electric vehicle technology as the future of global mobility.

The Egyptian Ministry of Industry, in coordination with the Supreme Council for the Automotive Industry, is working to prepare precise controls for these incentives linking them to the volume of new investments, the proportions of the added local component, the ability to export abroad, in addition to adherence to environmental standards.

The state believes that attracting these international companies will not only have an impact on vehicle production, but will also act as a magnet to attract international companies supplying automobile components, which will contribute to building an integrated industrial system that reduces the import bill and provides thousands of job opportunities for Egyptian youth in an advanced technical sector.

Within the framework of this national program, the Egyptian government seeks to transform Egypt into a leading regional center for the automotive industry in the Middle East and Africa, taking advantage of its strategic geographic location and the network of trade agreements that connect it to various continents.

While the government continues to support companies currently operating in the market that produce medium quantities, the biggest bet remains on the “million-dollar entities” that can achieve a boom in the volume of quantitative production.

Madbouly stressed that the state is fully prepared to overcome all obstacles and provide all customs and tax facilities to ensure the success of these global partnerships, and to ensure that Egypt keeps pace with major technological transformations in the world of engines and artificial intelligence related to modern driving systems.