2027 Vehicle Replacement Initiative: Forthing and Kaiyi to Participate with EVs and Hybrids

Three automotive companies have declared their readiness to join Egypt's vehicle replacement initiative, set to officially launch in 2027. Forthing was the first to announce, followed by Kaiyi Motors Egypt.

What is the Vehicle Replacement Initiative?

The Cabinet revealed in August a study to launch a new initiative for replacing old vehicles with new ones powered by electric and hybrid energy, as part of the state's push to expand clean vehicle usage and deepen local manufacturing. The initiative aims to replace internal combustion engine cars with fully electric or hybrid vehicles combining a fuel engine and an electric motor. Official launch is in 2027.

Forthing Leads the Way, Joins from Day One

Chinese brand Forthing and its local agent Al Amal Group were the first to officially declare readiness to participate. Amr Soliman, head of Al Amal Automotive, said the company will join the replacement program from day one, considering the initiative a significant opportunity for car companies, especially with the possibility of including electric and hybrid vehicles.

Soliman explained that the company plans to offer Forthing electric and hybrid cars within the program, once it starts according to the final government framework. He stressed that the spread of electric and hybrid vehicles can achieve substantial savings, making their inclusion in the replacement program a step that delivers benefits beyond merely replacing old cars. He also revealed the company's plan to start producing an electric car from Forthing in Egypt next March, aiming to boost local manufacturing.

Kaiyi Motors Egypt Officially Joins with an EV

After Forthing, Kaiyi Motors Egypt announced its intention to officially participate in the replacement initiative, aligning with its local market expansion plans. The company will offer an electric car under the program, but has not yet revealed specifications or pricing.

The Third Company and What It Means for the Market

The third company has not yet been named, but its announcement comes amid growing pressure on car agents to adapt to the shift toward clean energy. The initiative represents a golden opportunity for car companies to boost sales, especially as beneficiaries will receive new electric or hybrid cars instead of their old ones. With the launch set for 2027, Egypt's market is expected to see a wave of new electric and hybrid models.

Agents moving quickly to include their cars in the initiative will be better positioned to attract buyers. Forthing, for example, has already started its local electric car production in March, ahead of the official launch. This step reflects the company's bet on future demand for clean vehicles in Egypt.