Fitch Solutions Forecasts 5.9% Growth in Egypt's Auto Production by 2026

Egypt's automotive industry is entering a new phase of growth and expansion, supported by ambitious government plans to localize manufacturing and attract global investments. Fitch Solutions has forecast a continued positive performance for the sector in the coming years, reinforcing Egypt's position as a regional hub for low-cost vehicle production.

Production Growth of 5.9% in 2026

According to Fitch Solutions' projections, Egypt's automobile production is expected to grow by 5.9% during 2026. These forecasts are based on a package of government incentives supporting industrial localization, alongside sustained expansion by global companies—particularly Chinese automakers that have strengthened their presence in the Egyptian market through new production projects involving brands such as Geely, Chery, Exeed, and MG.

National Automotive Development Program

This growth is part of the national program for developing the automotive industry, which aims to achieve a qualitative leap by raising annual production capacity to 100,000 vehicles, increasing local value-added content to approximately 60%, and boosting the local component ratio to over 35%. The goal is to deepen domestic manufacturing and reduce reliance on imports.

Supporting the Supply Chain and Exports

The state is also focusing on supporting the automotive feeder industries, which are considered key pillars for enhancing the competitiveness of Egyptian products and expanding access to regional and international markets. This approach opens the door to further investments and creates new job opportunities in the industrial sector.

Promising Future for Electric Vehicles in Egypt

Outlooks indicate a promising future for Egypt's electric vehicle market, with growing investments in local manufacturing and the expansion of charging stations across the country. The EV market in Egypt is expected to achieve an average annual growth rate of 23.8% between 2026 and 2035, driven by government incentives and tax exemptions for locally manufactured electric vehicles, as well as rising consumer interest in this segment.