Alkan Unveils $120 Million Project to Assemble Kia and BAIC Vehicles in Egypt

Alkan Holding Group is preparing to expand its presence in Egypt’s automotive manufacturing sector through a new investment plan that includes the establishment of a local vehicle assembly plant with investments estimated at $120 million. The move reflects growing interest in local production and increased reliance on manufacturing within the Egyptian market.

Local Production of Kia and BAIC Models

The new facility will focus on assembling Kia and BAIC vehicles in Egypt, with local content rates ranging between 46% and 48% during the initial phase. These figures are expected to increase gradually over the coming years as efforts to deepen local manufacturing continue.

Production Expected to Begin in 2027

The project is currently in the design stage, with commercial production expected to start in 2027. The initiative is part of a broader plan aimed at supporting Egypt’s automotive industry and meeting rising demand for new vehicles.

Annual Capacity of 75,000 Vehicles

The plant is designed to reach an annual production capacity of 75,000 vehicles. Approximately 10,000 vehicles are expected to be produced during the first year of operation, with part of the output allocated for export to Arab and African markets.

Further Expansion in Egypt’s Automotive Industry

The project comes at a time when Egypt’s vehicle manufacturing and assembly sector is witnessing notable expansion, supported by plans to strengthen local industry and boost exports. It also aligns with growing interest from global and regional automotive brands exploring manufacturing and assembly opportunities in the Egyptian market.