Egypt is making big moves to build up its car industry and turn it into a strong global player. Last year, the Ministry of Industry launched the National Automotive Industry Development Programme (AIDP) to make more vehicles locally, attract foreign investors, increase exports, and rely less on imported cars and parts. According to a recent Fitch Solutions report, Egypt’s auto sector is set for steady growth in the coming years. The goal is to become a regional hub for affordable vehicle manufacturing. By the end of 2026, car production is expected to rise by about 5.9%, helped by government incentives that encourage local manufacturing and draw in major international companies, especially Chinese brands. Through the AIDP, the government wants to reach 100,000 vehicles produced per year, with around 60% of the value coming from local parts and over 35% of manufacturing done inside the country. The plan also focuses on building up electric vehicle (EV) production and strengthening the local supply chain. Egypt’s EV market is expected to grow strongly over the long term, supported by more local factories and better charging networks. EV sales are projected to increase by an average of 23.8% each year, up to 2035. In the last couple of years, Egypt has become Africa’s largest EV market by annual sales. This shows how quickly consumer interest, government policies, and industry plans are coming together around electric cars. As part of this shift, the government is starting to replace fuel-powered cars in its official fleet with electric ones to cut fuel use and improve energy efficiency. Beyond cars, Egypt has a wider strategy to grow its manufacturing sector. It aims to increase industry’s share of the economy (GDP) to 20-30% and push exports up to $100 billion by 2030. The plan focuses on making more products locally in 28 key sectors to reduce dependence on imports. This is being driven by partnerships with private companies, better infrastructure, and simpler rules for businesses. These priority sectors include solar and wind energy equipment, electric vehicles and their components, pharmaceuticals, aluminium products, textiles, petrochemicals, green hydrogen technology, food products, and many others. They were chosen based on factors, such as available energy, labour costs, access to raw materials, local demand, and Egypt’s good location for trade. The post Building Africa’s next auto powerhouse appeared first on Egyptian Gazette.
