Industry Minister Discusses Mercedes-Benz Egypt Local Expansion Plans

Khaled Hashim, Egypt's Minister of Industry, held a meeting with a delegation from Mercedes-Benz Egypt, led by CEO Thomas Wegershauser, to discuss the company's plans for expanding automotive manufacturing locally and the potential for exporting locally produced vehicles to neighboring markets. The meeting was attended by Alaa Salah, Head of the Automotive Unit at the Ministry of Industry, and Mohamed Sami, Assistant Minister for Strategic Affairs.

Current Manufacturing Capacity and Local Content

The discussions highlighted Mercedes-Benz's existing manufacturing capabilities in Egypt, centered around its plant in 6th of October City, which has an annual production capacity of approximately 5,000 vehicles with a local content ratio of 45%. These talks come as part of the government's efforts to advance the national automotive development program, which aims to attract companies capable of producing at least 100,000 vehicles annually while expanding feeder industries to deepen local value chains and attract new investments.

Government Incentives and Manufacturing Support

The minister confirmed that the government has implemented a comprehensive incentive package, including cash incentives tied to increased local content and added value, as well as environmental and tax incentives, and special export incentives. These measures are designed to boost the production of electric vehicles by Mercedes-Benz in Egypt and enhance automotive exports to various regional markets. Hashim emphasized that the company has a strong presence and a long-standing relationship with the Egyptian market, urging it to take swift steps to increase local production and added value by developing the local supplier network.

Market Regulation and After-Sales Services

Hashim added that the ministry aims to regulate the automotive market and improve service quality for citizens, ensuring the availability of authorized service centers capable of providing genuine services to protect consumers, along with reliable after-sales services and spare parts throughout the vehicle's lifespan. In response, Thomas Wegershauser, CEO of Mercedes-Benz Egypt, affirmed the company's commitment to strengthening its operations in Egypt and expanding its dealer network, noting that the Egyptian market is one of the most important in the region, which supports the company's future expansion plans in local manufacturing and export.