Minister of Industry: We Aim to Build an Integrated Automotive Ecosystem Attracting Global Manufacturers

New Vision for Egypt's Automotive Industry

Engineer Khaled Hashem, Egypt's Minister of Industry, has affirmed that the state is currently focused on building a strong automotive industry capable of competing in global markets. During a dialogue session at a transport exhibition, the minister emphasized that achieving a fully locally manufactured vehicle is not the primary goal at this stage, but rather a natural outcome of the industry's evolution and the enhancement of its production and export capabilities. He explained that the automotive sector is one of the most technologically complex industries, requiring massive investments, integrated supply chains, and a broad industrial base of suppliers and feeder industries.

Local Manufacturing Challenges and Local Content Ratios

The minister's remarks came in response to a question about the ministry's potential move toward forming industrial clusters aimed at producing an Egyptian car with up to 80% local content in the coming period, given the current challenges in achieving full local manufacturing. Hashem stressed that localization of the industry is a cumulative process based on continuous production expansion and achieving high levels of quality and competitiveness. He noted that the success of any country in building an advanced automotive industry is tied to its ability to achieve large production volumes targeting both the local market and export markets simultaneously.

Supportive Environment and Investment Attraction

The minister added that the ministry is working to provide a supportive environment for the sector's growth, allowing car manufacturers and component suppliers to expand and increase their investments. He pointed out that the current focus is on transforming plans and visions into projects that can be implemented on the ground. Hashem revealed that he has held a series of meetings with automotive companies operating in the Egyptian market since his first days in office, aiming to understand the challenges facing investors and the requirements for enhancing the industry's competitiveness. He emphasized that sector development must stem from investor needs and their ability to achieve sustainable economic feasibility.

Integration into Global Supply Chains

“What matters to me is creating an investment environment that makes the decision to manufacture in Egypt an economically attractive one for both local and global investors,” the minister stated. “Every company looks for a clear feasibility study before injecting new investments, and the state's role is to provide the elements that support this decision.” Hashem indicated that integration into global supply chains represents the cornerstone for industry development, stressing that global competitiveness is achieved not only through increasing local content ratios but also by producing vehicles and components with the quality and price suitable for international markets. The minister concluded by affirming that the state aims to attract major global manufacturers by offering competitive incentives and advanced infrastructure, thereby strengthening Egypt's position as a regional hub for the automotive industry.