Electricity Minister: EGP 900 Million to Revive El Nasr Automotive and Review Component Customs to Boost Local Manufacturing

Egypt has injected roughly EGP 900 million into developing production lines and building a paint shop at Nissan-linked El Nasr Automotive factories, according to Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy. The funds aim to revive the company after years of closure. Esmat stressed that the next phase requires shifting from assembly to actual manufacturing and increasing the local component ratio.

Dongfeng MAGE EV Production Launched in Helwan

The announcement came during a press conference marking the launch of the new Dongfeng MAGE EV electric vehicle at El Nasr Automotive factories in Helwan. The minister called the company's return to production a significant industrial achievement after investments aimed at reviving the industrial landmark. The funds helped develop production lines, equip the paint shop, and begin local bus assembly.

Esmat expressed satisfaction with Nissan's return to production and praised the quality of the new products. He emphasized that preserving these gains is a major responsibility for the company's management and workers to ensure continued operation and production expansion. The message is clear: the next phase demands long-term operational commitment.

Reviewing Customs on EVs and Their Components

The Minister of Electricity called for reconsidering the customs treatment of imported electric vehicles and their components. The issue he raised: some imported EVs were entering the Egyptian market without customs duties, while certain components and raw materials needed for local manufacturing are subject to fees. This situation requires studying current policies and reorganizing them to achieve fair competition.

The goal of the customs review is clear — encouraging companies to increase investments in local manufacturing instead of relying on fully built-up imports. The move comes as attention turns to Nissan prices locally and their ability to compete with imports. The minister did not set a timeline for the customs amendments but confirmed the study is ongoing.

Local Manufacturing: Ambition Meets Challenges

Moving from assembly to actual manufacturing is no easy step. It requires strong local supply chains, skilled labor training, and quality control that meets global standards. The allocated EGP 900 million covers production line development and the paint shop, but the experiment's success depends on investment continuity. Nissan's return to production is a first step on a long road.

The Dongfeng MAGE EV is a real test case. Local production gives Egypt a foothold in the EV market, but competition with duty-free imports puts the local product under direct price pressure. The customs and fees equation will determine whether Egyptian-made cars can withstand the pressure. That is the core of the review the minister called for.