EGA Could Manufacture Volkswagen Cars in Egypt

Egypt's Minister of Industry held a meeting with officials from Volkswagen AG to discuss the company's expansion plans in Egypt through local manufacturing and assembly. The Volkswagen delegation was led by Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa.

EGA Present at Key Meeting

The meeting included Karim Sami Saad, Chairman of the Egyptian German Automotive Company (EGA) and East Port Said Development Company, alongside representatives from the Automotive Industry Unit. Discussions focused on the company's plans to expand automotive manufacturing in Egypt in the coming period.

Exploring Electric Vehicle Production

The meeting reviewed ongoing studies for vehicle manufacturing in Egypt in collaboration with EGA, utilizing existing factories and production lines to save time and costs. Plans include starting electric vehicle production in East Port Said, as well as evaluating local suppliers to assess the potential for relying on local components.

The minister confirmed intensive meetings with major automotive manufacturers to encourage actual production in Egypt, leveraging incentives from the National Automotive Industry Development Program. The program aims to boost annual production to 100,000 vehicles by 2030 while expanding the feeder industries sector.

The minister emphasized that the largest incentives and market shares will go to the first companies that initiate local manufacturing and successfully meet program requirements regarding localization, increasing local content and added value, and improving supplier efficiency to achieve supply chain integration and reduce import dependency.

The minister urged the company's delegation to accelerate the preparation of market studies and decision-making processes at the parent company to seize current opportunities for transforming Egypt into a hub for Volkswagen vehicle manufacturing, both to meet large domestic market demand and for export purposes.