Mercedes-Benz Explores Doubling Investments in Egypt as Government Offers New Incentives

Egypt's Minister of Industry, Engineer Khaled Hashem, held a high-level meeting with a delegation from Mercedes-Benz Egypt led by CEO Thomas Wagershauser to discuss expansion plans in the local automotive market. The talks focused on the possibility of doubling the German automaker's investments in Egypt, alongside exploring opportunities to export locally assembled vehicles to neighboring markets in the coming period, reflecting the government's push to position Egypt as a regional automotive hub.

October Plant and Current Production Capacity

The meeting reviewed Mercedes-Benz's current manufacturing capabilities in Egypt, where the company operates a plant in the Sixth of October City with an annual production capacity of approximately 5,000 vehicles. The local content ratio in the vehicles produced currently stands at 45%, a figure the government aims to increase through a new package of incentives designed to deepen local manufacturing and boost value addition.

Government Incentives Under the National Automotive Industry Program

Minister Hashem confirmed that the state has adopted a set of incentive measures to support the national program for developing the automotive industry, with the goal of attracting companies capable of producing at least 100,000 vehicles annually. The program offers cash incentives tied to increasing local content ratios, value addition, and investment volume, alongside environmental and tax incentives, as well as dedicated support for exporting cars manufactured in Egypt to international markets. This approach is part of a broader strategy to develop feeder industries and deepen local value chains.

The meeting was also attended by Engineer Alaa Salah, Head of the Automotive Unit at the Ministry of Industry, and Engineer Mohamed Sami, Assistant Minister of Industry for Strategic Affairs. The officials emphasized the importance of building on Mercedes-Benz's strong presence in the Egyptian market by expanding local production and increasing the local content ratio. The minister also called on the company to develop its network of local suppliers, contributing to the deepening of national industry and attracting new investments that support manufacturing and export plans.