Egypt's Industry Minister Pushes for Full Local Body Manufacturing and Doubled Vehicle Output

Egypt's Industry Minister Pushes for Full Local Body Manufacturing and Doubled Vehicle Output

Egyptian market
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Aug 7, 2026 03:36 AM

Industry Minister Khaled Hashem held an expanded meeting with the Presidential Advisory Council of Egyptian Scientists and Experts, chaired by Hani Azer and attended by council representative Mohamed Saad, to discuss concrete steps for raising the local component ratio in vehicle manufacturing and producing car bodies entirely within Egypt. The gathering also included Mohamed Sami, the minister's assistant for strategic affairs, and head of the ministry's automotive unit, along with several industry leaders.

Doubling Production in Five Years

The study prepared by the council targets doubling Egypt's car production over the next five years. The figures are ambitious, and the core idea revolves around deepening local manufacturing of vehicle components — especially metal parts and the body shell — in ways that strengthen competitiveness and support Egypt's transformation into a regional automotive hub. The market is moving, and this plan aims to keep pace.

Discussions also covered building an integrated industrial system linking assembly plants with local supply chains capable of producing components that match the global specifications of parent companies. The approach leans heavily on Egyptian engineering talent in design, tool and mold development, industrial processes, and testing. Local expertise comes first in this equation.

Future Proposals for the Components Sector

The meeting reviewed several development proposals, most notably expanding sheet metal supply to additional locally assembled models, opening the door for component exports to regional markets in cooperation with parent companies, and developing lighter raw materials to improve fuel efficiency. Electric vehicles were also on the agenda as the ministry prepares to secure the metal components these cars will need.

The minister described the meeting as practical and executive in nature rather than theoretical, stressing the need to turn proposed ideas into realistic solutions that can be implemented on the ground. The participation of Egypt's top scientists and experts represents a fundamental pillar of this direction, given their accumulated scientific capital and direct familiarity with the realities of industry and investment in the country, plus their deep awareness of available opportunities and the regulatory environment.

According to the ministry, these meetings will now be held periodically to ensure recommendations turn into tangible results. The team continues to work on solutions grounded in knowledge and expertise — solutions that can evolve into real projects with measurable impact on the country's automotive manufacturing sector. The road is long, but the start looks promising.