Mercedes-Benz Egypt Discusses Local Expansion Plans with Egyptian Government

Egypt's Minister of Industry Khaled Hashem held an extensive meeting with the leadership of Mercedes-Benz Egypt, led by CEO Thomas Wagershauser, to discuss the company's expansion plans for local automotive manufacturing. The meeting marks a key step in Egypt's efforts to attract major global automakers and strengthen the automotive sector's role in the national economy.

Mercedes Expansion and Export Plans to Regional Markets

The meeting covered Mercedes' plans to expand car production in Egypt, including potential exports to regional markets. The Mercedes-Benz Egypt plant, located in 6th of October City, currently has an annual production capacity of 5,000 vehicles and operates with a local component ratio of 45%.

Mercedes Committed to Growing Its Business in Egypt

Thomas Wagershauser confirmed that the company is keen to develop and expand its operations in Egypt by increasing its dealer network. He emphasized that the Egyptian market is one of the most important markets in the region for the company, reflecting major brands' confidence in Egypt's investment climate.

Egypt Aims to Regulate the Automotive Market and Improve Services

Minister Khaled Hashem stated that his ministry primarily aims to modernize services provided to citizens by regulating the automotive market, establishing maintenance and service centers that offer genuine protection for consumers, and ensuring the availability of spare parts throughout a vehicle's lifespan. This approach is part of the government's vision to enhance the ownership experience for car buyers in Egypt.

Targeting 100,000 Cars Annually Through National Program Incentives

The minister confirmed that Egypt seeks to attract companies capable of producing at least 100,000 vehicles per year, leveraging incentives offered under the national automotive industry program. The strategy also includes expanding feeder industries to increase added value, with a focus on electric vehicle manufacturing and exports. Incentives include cash benefits tied to higher local content, added value, increased investments, environmental performance, and export growth. The minister called on Mercedes to boost its vehicle production in Egypt to fully capitalize on these incentives.