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| The Automotive Industry in Egypt |
Egypt's Largest Car Factory: "MAC" to Produce 50,000 Cars Annually
Egyptian Minister of Industry and Transport, Lieutenant General Kamel El-Wazir, stated that the Ministry of Industry aims to establish a city for the production of cars and their supporting industries in 6th of October City, coinciding with the launch of the "MAC" factory. This will be the first outcome of the automotive industry strategy.
The Minister pointed out that the government is working to implement this vision through two main pillars. The first is creating the necessary legislative environment and investment incentives to attract investors, based on the law establishing the Supreme Council for the Automotive Industry and the Environmentally Friendly Car Industry Financing Fund. This framework will regulate the implementation of the national strategy for developing the automotive industry.
This includes incentive programs for manufacturers, suppliers, and investors in this vital sector. The second pillar is strengthening partnerships with the local and international private sector by attracting leading global companies to manufacture automotive components in Egypt, localizing modern technology, and building the capabilities of Egyptian youth in this vital field.
He pointed out that, alongside these legislative and investment efforts, the government is simultaneously working to develop the infrastructure of specialized industrial zones and provide integrated logistics and facilities to ensure the rapid implementation of new industrial projects and the expansion of existing production capacities.
The minister added that the MAC factory relies on the latest sustainable manufacturing technologies and focuses on the production of electric and hybrid vehicles.
He stated that the government has a clear objective: to transform Egypt into a regional hub for the automotive industry in Africa and the Middle East, leveraging its strategic advantages, including a sophisticated network of roads and ports, and a prime geographical location connecting African, Arab, and European markets.
MAC is the largest passenger car manufacturing plant in Egypt.
MAC is considered the largest passenger car manufacturing plant in Egypt, with investments exceeding $150 million (EGP 7.5 billion). It produces up to 100,000 vehicles annually and provides 6,000 to 10,000 direct and indirect job opportunities.
MAC's transportation manufacturing facility spans an area of 55,000 square meters.
Egyptian billionaire Mohamed Mansour, chairman of Man Capital Group, the family-run firm managing billions of dollars from London, announced at a press conference in Cairo on Monday that his company will work to localize the clean car industry, starting with an initial production of 50,000 cars annually, which will then increase to 100,000.
He added that the factory's operation will save the Egyptian economy up to $500 million in foreign currency annually. Mansour expressed optimism about the improvement in Egyptian economic indicators, stating, "Our investments in Egypt are one of the factors attracting foreign investment."
Egyptian Strategy to Revive the Automotive Industry
For his part, the minister stated that the government's strategy to revive the automotive industry aims to establish a truly integrated industry, starting with component manufacturing, moving through car assembly, and culminating in the localization of electric and hybrid vehicle production, in line with global trends towards green and sustainable transportation.
He explained that, within this framework, the government launched the National Automotive Industry Development Program, which aims to achieve a qualitative leap in this sector by increasing production capacity to approximately 100,000 vehicles annually per company and 7,000 electric vehicles by the end of the program in 2032.
The program also aims to raise the local component ratio to more than 35% and increase local added value to approximately 60%.
The minister pointed out that this program is based on an integrated system of incentives that links industrial, environmental, and investment performance. These incentives include measures to increase local added value, boost production volume, encourage new investments, adhere to environmental standards, raise the local component ratio, and develop priority industrial zones.
These objectives reflect the state's commitment to building a genuine national automotive industry capable of competing regionally and internationally, and they open the door for the private sector to actively participate in this major industrial transformation.
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