Egypt Targets Full Local Car Body Manufacturing and Boosting Local Component Production

The numbers are clear. Egypt's government is pushing to shift the automotive industry from assembly to full integrated manufacturing, focusing on deepening local component production and localizing key parts — with the metal body structure at the top of the list. The goal is to strengthen industry competitiveness and boost export opportunities.

High-Level Meeting with Experts and Manufacturers

This was the focus of an expanded meeting held by Engineer Khaled Hashem, Minister of Industry, with the Presidential Advisory Council of Egyptian Scientists and Experts, led by Engineer Hani Aziz, and attended by representatives of car and feeder parts manufacturers. The meeting discussed implementation steps for a council-prepared study aimed at doubling car production in Egypt over the next five years.

The agreement established a joint committee comprising ministry representatives, the advisory council, and car manufacturers. This committee will develop the executive framework for the study's recommendations and track progress through regular meetings. The goal is straightforward — turning proposals into concrete actions on the ground, leveraging the expertise of scientists and specialists to craft viable solutions.

From Assembly to Full Manufacturing

The minister emphasized the strategy goes beyond boosting assembly rates. It targets building an integrated industry covering all value-chain links, from component manufacturing to producing cars with high local added value. The state is working on localizing technology and expanding local component production. That reduces import dependence and supports Egypt’s transformation into a regional automotive hub.

The meeting also tackled mechanisms for manufacturing vehicle metal bodies in Egypt, alongside deepening metal component production aligned with global parent-company specifications. Egyptian engineering expertise in design, mold development, production, and testing was a key theme in the discussions.

Steel Supply and New Export Markets

Expanding steel sheet supply for additional locally assembled car models, and opening new markets for component exports, were among the most prominent files on the table. Developing production materials remains the key to success in this complex equation, especially with fierce global competition in the components sector.