• Egypt’s car and auto component exports hit USD 891M in nine months, rising 9% year-on-year amid sector recovery.
• The government targets producing 260K cars by 2026 and 400K by 2030, with 25% designated for export.
• New incentives and local assembly drives are fueling Egypt’s automotive rebound, with exports expected to exceed USD 1 billion by year-end.

Cars

Egypt’s exports of cars and auto components rose to USD 891 million in the first nine months of the year. This is up 9% year-on-year with expectations to exceed USD 1 billion by year-end.

The growth is driven by the industry’s recovery and a government strategy to boost local production. Their mission is to produce 260,000 cars by 2026 and 400,000 by 2030. Additionally, it also seeks to increase local components, generate jobs and expand exports.

According to Sherif El Sayad, President of Tredco for Engineering Industries (PASSAP) & Tredco Mobility (Glide), the rise reflects global automakers’ growing tendency to assemble models locally. This comes after recent government incentives aimed at strengthening domestic manufacturing.

Recently, the Egyptian government released the National Strategy to Support the Automotive Industry. This strategy aims to increase the local component ratio in domestically produced vehicles. Furthemore, this aims to enhance export potential and generate thousands of jobs.

Car Production

Egypt plans to more than double its local car production to reach 260,000 units annually by 2026, up from around 95,000 currently. The country also aims to surpass 400,000 units per year by 2030. This is with 25% of output dedicated to exports, potentially generating around USD 4 billion annually in foreign currency.

El-Sayad expects Egypt’s automotive exports to exceed USD 1 billion by the end of the year. This is in a reflection of the sector’s s recovery supported by the new  government policies.

Auto exports are among the top segments in Egypt’s engineering industries that the Export Council aims to boost. This is part of a plan to increase total sector exports by 32% to USD 7 billion by 2025, in comparison to USD 5.3 billion last year. The plan is driven by the automotive rebound and new local assembly operations.