Madbouly: Egypt Aims for 100,000 Fully Locally Manufactured Cars Annually in 3 Years

Egypt has set an ambitious target. Prime Minister Mostafa Madbouly announced the country aims to manufacture 100,000 cars annually entirely within Egypt over the next three years, part of the state's push to localize the automotive industry.

The announcement came during the closing session of the Egypt Forum 2026, which wrapped up on Saturday, October 24. The goal isn't limited to vehicle assembly — it extends to building a fully integrated industrial base by attracting global company investments, raising local factory output, and expanding component manufacturing inside Egypt instead of relying on imports. The vision is clear.

Incentives Drive Automotive Localization

EGP 5,000 per 1% increase in local industrial content beyond the 35% threshold. That's the incentive offered under the National Automotive Industry Development Program, a key tool pulling manufacturers toward higher domestic production. The government is also working to provide additional incentives for global companies to manufacture in Egypt, focusing on achieving large production volumes that reduce manufacturing costs and improve the competitiveness of locally produced vehicles.

The program ties incentives not just to output but also to new investments and local value addition, according to the published rules. The government is studying mechanisms to support vehicle and feeder industry exports, along with activating the investment incentives allocated to the sector. The ultimate aim is to expand the local manufacturing base and boost the competitiveness of Egyptian products.

Will Egypt Become a Regional Automotive Hub?

The question is being asked loudly after this target was announced. Reaching 100,000 fully locally built cars annually would mean a radical shift for Egypt's automotive sector. That has long relied on imports and simple assembly. Full manufacturing means strong domestic supply chains and component plants running at full capacity.

The road won't be easy. Hitting that number within three years requires massive investment and rapid expansion of existing factories, plus attracting new players. Yet the government appears committed to its plan, leaning on the National Program's incentives and published rules, in an attempt to redraw Egypt's automotive industry map.