Localization of the automobile industry in Egypt…steps towards possessing electric car technology

The Egyptian state is moving to strengthen the capabilities of the industrial sector and raise its contribution to the national economy, through expanding the localization of value-added industries and developing local production chains, in a way that supports the ability of Egyptian products to compete in regional and international markets.

The automobile industry is among the sectors that are receiving increasing attention, because of the broad opportunities it possesses to increase local production and open new horizons for export.

In this context, the auto industry localization plan emerges as one of the important paths to deepen local manufacturing, by attracting investments and industrial partnerships, developing feeder industries, and building a production base for electric vehicles and their components, This contributes to reducing dependence on imports and supports the country’s move towards green transformation.

Axes of the auto industry localization plan

From this standpoint, Dr. Mustafa Madbouly, Prime Minister, chaired a meeting in the presence of Engineer Khaled Hashem, Minister of Industry, and Engineer Mohamed Sami, Assistant Minister for Strategic Affairs, to review the most important axes of the plan to localize the automobile industry and the industries that feed it.

At the beginning of the meeting, the Prime Minister stressed that the growth of the industrial sector occupies a high priority on the government’s work agenda in general during the current stage, with a particular focus on the file of localization of the automobile industry. To benefit from the elements supporting this trend in the Egyptian market, and the promising opportunities in light of the widespread consumption locally; And the attractive export prospects for surrounding markets.

added Dr. Mostafa Madbouly said that the state is paying special attention, within this plan, to supporting the production of electric vehicles and their inputs, in connection with its strategy seeking towards green transformation and reducing dependence on fossil fuels, for environmental aspects in addition to reducing the import bill.

Existing aspects of cooperation to localize the industry

For his part, the Minister of Industry presented the most prominent steps taken within the framework of each axis within the plan to localize the automobile industry and feeding industries, pointing to the existing aspects of cooperation to localize the automobile industry and its internal components locally, including the partnership between international and local companies, in cooperation with the Arab Organization for Industrialization; To start manufacturing 7 metal parts with a total of 8 million pieces annually.

The steps also included strengthening cooperation between the Brazilian Mold and Tool Industry Association ABINFER stands for the Associação Brasileira da Indústria de Ferramentais (Brazilian Toolmaking Industry Association); And the Department of Productive Efficiency and Training to establish a vocational school specializing in the manufacture of molds.

This trend is linked to the ninth goal of the Sustainable Development Goals, which is concerned with industry, innovation and infrastructure, by strengthening national production capabilities, developing feeder industries, and transferring technical and technological expertise to local cadres, in a way that supports building a more diversified industrial base capable of meeting market needs.

The Minister also discussed the most important steps being taken within the framework of the axis of localization of the battery industry for electric cars, for the use of batteries in buses, as well as the ongoing agreement with one of International companies to use their batteries in cars that they will manufacture locally.

Regarding the axis of localization of the electric motor industry, the Minister referred to the proposed cooperation paths with one of the international companies to manufacture electric car engines locally. In cooperation with the Arab Organization for Industrialization.

Three models of electric cars

Eng. Khaled Hashem presented aspects of cooperation with international companies within the framework of the plan, pointing out that a major international company is intending to start producing three models of electric cars during the year 2027, to reach an annual production volume of 100 thousand cars by 2032, with a starting rate of 10% local component reaching 27% by 2032.

Laboratory tests for food industries

With regard to the feeding industries axis, the Minister of Industry discussed the existing cooperation paths to localize the accreditation of laboratory tests for feeding industries, in addition to developing the Engineering Industries Technology Center in 10th of Ramadan to support suppliers.

With regard to the charging stations axis, the Minister presented the existing aspects of cooperation with international companies to establish charging stations for electric cars, and prepare the infrastructure to facilitate the work of these stations.

During the meeting, the most prominent developments of the National Automotive Industry Development Program (AIDP – Automotive Industry Development Program) were reviewed, which was launched with the aim of encouraging the deepening of local manufacturing in this field. In this regard, the Minister touched on the most important incentives and facilities that are being studied for the electric car industry, in order to motivate car manufacturers to start manufacturing Electric cars locally, in light of the country’s tendencies to gradually shift towards this type of clean energy cars.

This trend extends to supporting the seventh goal of the Sustainable Development Goals, related to clean energy at affordable prices, as the expansion of the use of electric vehicles and the development of the infrastructure necessary to operate them represents one of the supportive paths to reduce dependence on traditional fuels and enhance the efficiency of energy use in the transportation sector.

In conclusion, the auto industry localization plan gains its importance from its ability to reshape the Egyptian industrial structure by building interconnected production rings, starting with the manufacture of metal parts, batteries, and electric motors, and extending to the development of feeding industries, laboratory tests, and the infrastructure for charging stations.

This is granted Local industry integration is an opportunity to accumulate technical and technological expertise, raise the proportion of the local component, and enhance the efficiency of supply chains, which supports the national economy’s ability to build a more diversified and independent production base, and opens broader horizons for competition and export.

The Earth Guards Foundation addresses the localization of the automobile industry from a broader angle that goes beyond the development of a specific industrial sector, to be linked to redirecting production paths towards industries that are more compatible with environmental requirements, most notably electric vehicles and their components, making the green transformation an integral part of the industrial development process.

The real value of this trend lies in the combination of building national manufacturing capacity, rationalizing resource consumption, and reducing emissions resulting from the transportation sector, with the development of technology and infrastructure. its supporting infrastructure; These are components that place environmentally friendly industry at the heart of sustainable development, and make its localization a path to building a more efficient and sustainable economy.