This drive is part of the government’s overall industrial plan to boost local production, improve export competitiveness, and increase foreign exchange revenues.
The move comes as numerous Egyptian manufacturers have stated that they are ready to expand outside the home market by exporting automobiles to Africa and the Arab world.
Car manufacturers in Egypt prepare for exports
According to local media, three big automakers are leading the country’s export effort.
Nissan Egypt and General Motors Egypt have apparently submitted proposals to the Ministry of Industry for permission to begin exporting automobiles, but the identity of a third participating manufacturer has yet to be revealed.
The initial phase of the initiative is intended to result in exports of 10,000 to 30,000 automobiles, with annual export volumes likely to reach 100,000 by 2030.
The export plan complements Egypt’s goal of increasing yearly vehicle production to more than 400,000 vehicles, with around one-quarter of overall manufacturing going for international markets.
Car export viewed as vital to industrial growth
Industry players believe that increasing exports will be crucial to accelerating the growth of Egypt’s automotive sector.
Khaled Saad, Secretary-General of the Automotive Manufacturers Association, stated that the government has implemented incentives to encourage manufacturers to grow domestic output while seeking overseas markets.
He revealed that, while passenger vehicles built in Egypt now contain around 40% locally sourced components, the remaining is still imported as part of global automotive supply chains.
According to Saad, expanding exports will not only generate substantial foreign currency revenues but also enable firms to leverage Egypt’s trade agreements with a variety of nations.
He noted that the country’s geographic location gives it a competitive edge by making it simpler to access markets in Africa, the Middle East, and portions of Europe.
Domestic car supply in Egypt is projected to stay constant
Industry leaders downplayed fears that export plans would diminish car availability in Egypt, as reported by The Voice of the Emirates.
The chairman of the Automotive Dealers Association, Osama Abul-Magd, stated that manufacturers want to export only output levels that surpass local demand.
He also stated that car prices in the domestic market are impacted more by exchange rates, import costs, customs charges, taxes, and shipping costs than by export activities.
As Egypt’s manufacturing base and industrial infrastructure grow, analysts predict more automakers to join the export program in the future years, bolstering the country’s goal to become a regional leader in automobile production and exports.
