The Egyptian government has set a target to produce 100,000 electric vehicles annually by 2032, as part of its efforts to localise electric vehicle manufacturing and automotive components. Prime Minister Mostafa Madbouly reviewed the main pillars of the government's plan to localise the automotive industry during a meeting with Industry Minister Khaled Hashem and Mohamed Sami, the ministry's Assistant Minister for Strategic Affairs. The plan aims to reduce import dependence, strengthen domestic manufacturing, and expand export opportunities.
The government is placing particular focus on electric vehicle manufacturing and its components as part of its broader strategy to support the green transition, reduce reliance on conventional fuels, and lower the country's import bill. Madbouly emphasized that industrial growth remains a key government priority, with particular emphasis on automotive manufacturing, given Egypt's large domestic consumer market and opportunities to export to neighbouring markets.
Industry Minister Khaled Hashem outlined ongoing partnerships aimed at increasing domestic production of automotive components. These include an agreement involving an international company, El Araby Group, and the Arab Organization for Industrialization (AOI) to manufacture seven metal automotive components, with a combined annual production capacity of 8 million pieces. The ministry is also cooperating with the Brazilian Association of the Mould and Die Industry to establish a specialised vocational school for mould and die manufacturing.
The government is also exploring cooperation with international companies to manufacture electric motors locally in partnership with the AOI and to supply batteries for vehicles manufactured in Egypt. Hashem highlighted a partnership between an international company and MCV to use locally supplied batteries in buses, alongside ongoing discussions with another international company.
A major international automaker plans to begin producing three electric vehicle models in Egypt in 2027, targeting annual production of 100,000 vehicles by 2032. The company also aims to increase the local component content of its vehicles from an initial 10% to 27% by 2032. China's Dongfeng has started manufacturing electric vehicles in partnership with SN Automotive and state-owned El Nasr Automotive Manufacturing Company.
The localisation plan also includes strengthening the domestic automotive supply chain by developing laboratory testing capabilities for automotive components and upgrading the Engineering Industries Technology Centre in 10th of Ramadan City to support local suppliers. The ministry is working with international companies to establish charging stations and prepare the necessary infrastructure to facilitate their operation.
The government is studying additional incentives and facilities for electric vehicle manufacturing to encourage automakers to begin local production, in line with Egypt's gradual transition towards cleaner energy-powered transport. The National Automotive Industry Development Programme (AIDP) was launched to encourage deeper local manufacturing and strengthen the domestic automotive industry.
Key points
- Egypt targets annual production of 100,000 electric vehicles by 2032.
- The government is focusing on localising electric vehicle manufacturing and automotive components.
- A major international automaker plans to begin producing three electric vehicle models in Egypt in 2027.
