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Egypt getting Chinese auto factory: China’s state-owned auto manufacturer BAIC Group has inked an agreement with Egyptian agent Alkan Auto to establish an EV factory in Egypt, with the start of production penciled in for the end of 2025, according to a statement. The factory will initially have an annual production capacity of 20k vehicles, which will be ramped up to 50k units by the end of its fifth year of production.
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Remember: The Madbouly government has been working to localize the auto industry, introducing the Egyptian Automotive Industry Development Program in 2022, which will offer incentives to auto players with the aim of localizing the industry and its feeder industries in efforts to enhance the country’s existing assembly and manufacturing capabilities — and encouraging new investment to the sector.
Localization and upping exports are part of the game plan: The cars from the factory are set to be sold locally and exported to Middle Eastern and African markets. The company is also planning to gradually increase the factory’s local component ratio from 48% to 58% over an unspecified time frame. The factory will create 1.2k jobs.
Déjà vu? We first heard about the project in September from unconfirmed local media reports, claiming that the two companies were in talks about the project.
It originally looked like BAIC was set to partner with Al Nasr on an EV project: We heard that BAIC inked a MoU with the state-owned Al Nasr Automotive to produce EVs locally back in June 2022, but we never got any confirmation that final contracts were signed.
This is far from the only Chinese auto factory in the pipeline: In September, we heard from unconfirmed reports that Chinese auto giant BYD through its local agent was negotiating to produce two new models locally. In the same month, we also heard that Dayun Guangzhou — whose motorized tricycles and motorcycles are familiar sights on Egyptian roads — also wants to expand its range of vehicles assembled here to also include passenger cars, light transport vehicles, and trucks. Also Kasrawy Group is reportedly looking to begin locally assembling Chinese Jetour and Jac car models.
