Nissan Africa Chief: Egypt's Auto Market Is Gradually Recovering, One Million Cars Is the Long-Term Goal

Egypt's automotive market is gradually recovering. Nissan's long-term target for the country is one million cars annually, according to Mohamed Abdelsamad, President of Nissan Middle East and Africa. The figure is bold. He told Ahram Auto that infrastructure development and new city projects, particularly New Alamein, could have pushed sales to 500,000 cars per year — if not for rising interest rates that have squeezed consumer purchasing power. The long-term ambition of Nissan in Egypt remains one million vehicles a year, reflecting the scale of opportunity in one of the continent's largest markets.

Infrastructure Drives Additional Demand

Road projects and new cities do more than improve commutes. Abdelsamad explained that urban expansion — led by New Alamein — creates additional demand for vehicles needed to transport workers, engineers, and operating equipment, while also supporting trade, export-import activity, and supply chains tied to the auto industry. Demand is widening. These factors combined open the door for sustained growth in sales of Nissan vehicles and other brands operating in Egypt, according to the company's president.

High Interest Rates Remain a Key Constraint

Rising interest rates represent one of the biggest obstacles to sales growth. A large share of consumers relies on financing to buy cars. Higher borrowing costs increase the overall burden and limit customers' ability to purchase. Abdelsamad stressed that evaluating car prices should not be limited to the nominal sticker price — it must include financing costs over the repayment period. The difference matters. Higher interest rates can significantly inflate the final cost of a vehicle even if its listed price stays the same, directly affecting purchase decisions and market demand.

Egypt Is Nissan's Largest African Market

Egypt leads Nissan's markets across Africa, followed by South Africa, Morocco. Tunisia in both manufacturing and sales. Local production surpassed 28,000 vehicles for the first time since the factory was established in 2005 — a figure that reflects the scale of investment in domestic manufacturing. The jump is significant. This production growth strengthens Egypt's position as a regional manufacturing hub, especially as harmonizing specifications across African countries is described by Abdelsamad as a prerequisite for expanding the auto industry and reducing production costs.

Used Cars and African Integration

Used cars hinder local manufacturing. Abdelsamad noted that African integration would open a larger market for suppliers, but the continent remains far from its true potential. Africa accounts for 19% of the world's population, yet its share of global vehicle production is just 1.5%. The gap is stark. This massive disparity between population and output highlights the scale of missed opportunities and the urgent need for shared industrial policies among African nations to support local manufacturing and reduce dependence on imports.