Egypt is stepping up efforts to attract major global automakers to establish local production, offering incentives under its national automotive strategy, Minister of Industry Khaled Hashem said on Thursday.
Hashem said companies that move quickly to launch manufacturing operations and meet programme targets — particularly on increasing local content and value added — will receive the largest share of incentives and market quotas under the National Automotive Industry Development Program.
His remarks came during a meeting with a delegation from Volkswagen led by Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, to discuss plans to expand vehicle production in Egypt.
The two sides reviewed feasibility studies being conducted by the company in cooperation with the Egyptian German Automotive Company to assess manufacturing prospects in the country.
Discussions focused on leveraging existing production facilities to reduce costs and timelines, as well as preparing for the potential rollout of electric vehicle manufacturing in East Port Said. They also examined local supplier capabilities to identify opportunities to boost domestic content in vehicles.
Hashem said the ministry is holding talks with several global automakers to accelerate investment decisions, with a target of raising annual vehicle production to 100,000 units by 2030, while supporting feeder industries and localising supply chains.
"Priority will be given to companies that commit early and align with programme requirements," he noted.
In turn, Biene said Volkswagen views Egypt as a strategic market in Africa and one of the continent’s largest automotive markets, adding that the company is keen to expand its footprint in the country.
Follow the latest news on Google News
