Egyptian Cabinet greenlights new automotive production incentive program

Updated 5/22/2025 5:40:00 AM

Arab Finance: The Egyptian Cabinet approved a new automotive production incentive program as part of the National Strategy for Localizing the Automotive Industry, as per a statement.

The initiative comes under the directives of President Abdel Fattah El-Sisi to localize the automotive industry, given its role in attracting investment, increasing exports, and reinforcing the national economy.

Prime Minister Mostafa Madbouly highlighted that the newly approved program aims to establish a competitive and robust industrial base for vehicle manufacturing and its related industries in Egypt.

It also seeks to create an attractive investment climate that promotes the localization and deepening of local manufacturing. This is in addition to lowering reliance on imports and encouraging exports, while maximizing the benefits of international trade agreements.

The program includes raising the local value-added component in automotive production to 60%, expanding the local industrial input to over 35%, and boosting annual vehicle production to 100,000 units.

The program also supports the transition toward environmentally friendly vehicles and encourages the establishment of manufacturing facilities in priority development areas.

Madbouly added that the program offers additional incentives, particularly for exporting companies, allowing them to access rewards for their export activities.

It also includes extra benefits for companies that exceed the program’s performance targets, supporting the state’s commitment to driving sustainable industrial growth.