Arab Finance: Egypt is stepping up efforts to localize automobile manufacturing and related industries, with plans to expand electric vehicle production and increase local content in vehicles, Prime Minister Mostafa Madbouly said during a meeting to review the government's automotive localization plan.

In the meeting attended by Minister of Industry Khaled Hashem and Assistant Minister of Industry for Strategic Affairs Mohamed Sami, Madbouly noted that industrial growth is a key government priority, with a particular focus on the automotive sector.

The government is also prioritizing electric vehicle manufacturing and its inputs as part of its strategy to promote the green transition, reduce reliance on conventional fuels, and lower the import bill, Madbouly added.

For his part, Hashem outlined a partnership involving an unnamed international company, Egyptian industrial group El Araby Group, and the Arab Organization for Industrialization (AOI) to manufacture seven types of metal automotive components locally, targeting an annual output of 8 million units.

Efforts to develop the industry's technical workforce also include cooperation between the Brazilian Association of the Tool Industry (ABINFER) and Egypt's Productivity and Vocational Training Department to establish a vocational school specializing in molds and dies.

In EV battery manufacturing, Hashem highlighted a partnership between an international company and Egyptian bus manufacturer Manufacturing Commercial Vehicles (MCV) to supply batteries for buses, alongside an agreement under development with another international company to provide batteries for vehicles manufactured locally. The ministry is also exploring cooperation with a global manufacturer and AOI to establish domestic production of electric motors.

Hashem said a major international company planned to begin producing three electric vehicle models in 2027, with annual production targeted at 100,000 vehicles by 2032 and 222,000 vehicles by 2032. Local content is expected to start at 10% and rise to 27% by 2032.

The minister also highlighted the start of local EV production by Chinese automaker Dongfeng in partnership with Egypt-based SN Automotive and state-owned El Nasr Automotive Manufacturing Company, using El Nasr's production lines.

Beyond vehicle assembly, the government is working to expand domestic manufacturing of automotive components, including metal parts, batteries, and electric motors.

Alongside these manufacturing initiatives, the government is working to localize laboratory testing for automotive components and upgrade the Engineering Industries Technology Center in 10th of Ramadan City to strengthen technical support for local suppliers.

Hashem also reviewed cooperation with international companies to establish EV charging stations and develop the infrastructure and operating framework needed to support their expansion.

The meeting further addressed progress under the Automotive Industry Development Program (AIDP), which aims to increase local manufacturing within the automotive sector.

The minister discussed incentives and facilities currently under consideration to encourage automakers to establish EV production operations in Egypt, in line with the government's plans to expand the use of clean-energy vehicles.