Egyptian Minister: Mercedes Current 5,000 Annual Capacity Is Not Enough — We Demand Expansion

Egypt's Minister of Industry, Engineer Khaled Hashim, has called on Mercedes-Benz Egypt to take new expansion steps in the local market. During a meeting with a delegation led by Thomas Wegershausen, the company's CEO, the minister stressed that the current production capacity of 5,000 cars per year is insufficient for the country's automotive development ambitions.

Sixth of October Plant and Local Content Ratio

Mercedes-Benz operates a plant in the Sixth of October City, with an annual production capacity of 5,000 vehicles and a local content ratio reaching approximately 45%. The meeting reviewed the company's current manufacturing capabilities, with expectations of increasing these figures significantly in the near future.

National Program for Automotive Industry Development

The minister confirmed that the state is working to provide an attractive environment for global investments in the automotive sector through incentive measures included in the National Program for Automotive Industry Development. The program aims to attract companies capable of producing at least 100,000 cars annually, while also supporting feeder industries, deepening local value chains, and increasing electric vehicle manufacturing in Egypt.

New Incentives for Production and Export Growth

The incentives offered under the program include cash incentives linked to increasing the local content ratio and added value, as well as increased investments, plus environmental, tax, and export-related incentives. The meeting also discussed opportunities to export locally manufactured cars to neighboring markets in the coming period.

Developing the Local Supplier Network

The minister urged Mercedes-Benz to work on developing the local supplier network, which would contribute to deepening the automotive industry in Egypt and attracting new investments in the sector. He added that the ministry also aims to regulate the auto market and raise the level of services provided to consumers.