Cairo, Egypt – Egypt is aiming to begin exporting locally manufactured and assembled cars by the end of 2026. This move is part of a broader strategy to enhance the competitiveness of domestic industry and increase the country’s foreign currency reserves.
It follows announcements by several major companies operating in the local market
that they are ready to begin exporting to Arab and African markets.
This initiative is part of a government strategy to localize the automotive industry.
Three companies are leading the export plan
Reports indicate that three major companies, including Nissan Egypt and General Motors,
have submitted applications to the Ministry of Industry to begin exporting vehicles.
The name of the third company has not been officially announced.
The companies aim to export between 10,000 and 30,000 vehicles in the initial phase.
This figure is then expected to gradually increase to approximately 100,000 annually by 2030.
This initiative aligns with the government’s plan to increase total domestic production
to over 400,000 vehicles per year, with a quarter of that production earmarked for export.
Exports support industry and the economy
The Secretary-General of the Automotive Manufacturers Association, Khaled Saad,
affirmed that exports are a key pillar in developing Egypt’s automotive industry.
He also noted that the government offers incentives to companies
that expand local manufacturing and target foreign markets.
He explained that the global automotive industry relies on international supply chains.
He pointed out that the local component in passenger cars produced in Egypt is approximately 40%,
while the remaining components are imported.
He added that expanding exports will contribute to generating foreign currency.
Furthermore, companies will benefit from trade agreements linking Egypt to several markets.
This will also enhance competitiveness thanks to Egypt’s geographical location and proximity to target markets.
Limited impact on the local market
For his part, Osama Abul-Magd, head of the Automotive Dealers Association,
affirmed that export plans will not affect supply in the local market.
He explained that companies will only export surplus production beyond market needs.
He pointed out that car prices are not directly linked to exports but are influenced by other factors.
Among the most important of these are foreign exchange rates, import costs, customs duties, taxes, and shipping costs.
Industry experts believe that Egypt’s entry into the automotive
export market represents a new phase in the localization of the industry.
This also strengthens the country’s position as a regional hub for production and export.
New companies are expected to join the export system in the coming years,
benefiting from the expansion of the local manufacturing base and the growing industrial infrastructure.
