Egypt Aims to Manufacture Over 100,000 Cars in Two Years, Local Content to 60%

Egypt is targeting the production of more than 100,000 vehicles within two to three years, Prime Minister Mostafa Madbouly announced, alongside plans to raise the local content ratio from the current 45% to 60%. The figure is ambitious. The move is part of a broader strategy to localize the automotive industry and expand manufacturing capabilities, with a particular focus on electric vehicles.

A Bold Plan to Boost Production and Local Content

The target isn't just a number on paper. The government wants to transform Egypt into a regional manufacturing hub by reviving dormant factories and restarting operations at Nissan through a global partnership. The revived facility won't only supply the domestic market but also open doors for export, giving Egyptian-made vehicles a real international footprint. Madbouly stressed that Egypt possesses a massive industrial base capable of meeting these goals.

Global Automakers Eye Local Manufacturing in Egypt

Is the ambition limited to numbers? Not at all. Several new automakers that recently entered the Egyptian market are already studying local manufacturing for export. Among them is Kia, which plans to produce models like the Seltos and Cerato locally. The step reflects growing confidence in Egypt's manufacturing capabilities and its ability to attract major investment in this vital sector.

Local manufacturing expansion goes beyond simple vehicle assembly. There is a clear push toward deepening the supply chain — producing components domestically rather than importing them. This approach creates a full value chain around the automotive sector, from metal and plastics manufacturing to electronics and electrical systems.

Egyptian-South African Partnership for Auto Components

On the components front, Al Araby Group signed an agreement with South Africa's Malben Engineering to establish a joint venture for manufacturing automotive components. The deal was signed during the Africa Automotive Investment Forum in El Alamein. The South African company specializes in manufacturing and forming metal components and parts used in vehicle production.

The partnership will leverage Al Araby Group's industrial, engineering. Technological capabilities, alongside Malben's expertise in supplying components to several global automakers. The goal is to develop a shared production base serving both Egyptian and African markets. Such partnerships are exactly what Egypt's automotive industry needs to push local content to the targeted level.

The numbers speak. 100,000 vehicles in two to three years, local content up to 60%, dormant factories back online, and global companies lining up to manufacture and export. This is a clear strategy with defined milestones. The Egyptian market is moving steadily toward regional manufacturing prominence, and the results will show on the ground in the coming years.