Khaled Saad: 3 to 4 New Car Factories Moving Toward Local Manufacturing by Q1 2027

Khaled Saad, Secretary General of the Automobile Manufacturers Association, revealed that concrete movements are underway to bring additional investments into Egypt's local auto manufacturing sector. Expectations point to announcements regarding 3 to 4 new car factories before the end of Q1 2027. The industry is shifting faster than many anticipate.

China Visit Reshapes the Investment Landscape

These aren't random projections. Saad's statements came during his appearance on the 'Arabiti' program hosted by Hisham El-Zeiny on Radio Egypt, where he emphasized that recent developments in economic relations between Egypt and China are providing a strong boost to local manufacturing plans, particularly given the growing interest from Chinese companies viewing the Egyptian market as a strategic hub for both production and export. The recent visit of Chinese President Xi Jinping to Egypt on September 1st and 2nd saw the signing of over 20 cooperation agreements across various fields, reflecting the growing ties between the two nations.

A Gradual Shift from Importing to Producing

Local industry faces a different opportunity this time. The coming period may witness the entry of more companies, with numerous Chinese brands already present in the Egyptian market seeking a gradual transition from selling imported cars to full local production. The scope extends beyond simple vehicle assembly to include investments in production components and feeder industries — the true backbone of any serious automotive sector.

Exports Add Another Incentive for Manufacturing in Egypt

Will the new factories serve only the domestic market? The answer is no. Saad confirmed that the shift toward manufacturing isn't tied solely to local market needs, as factories established in Egypt can play a pivotal role in exporting to neighboring markets, leveraging the country's strategic geographic location and its network of trade agreements with numerous Arab, African, and European markets. Time will reveal the full scale of these opportunities, but early indicators support optimism. Cairo is moving decisively to attract investments capable of transferring technology and increasing the percentage of locally manufactured components.