A subsidiary of a well-known Japanese car manufacturer, Nissan Egypt, is aiming to increase local manufacturing investment.
The company has revealed plans to invest $45 million to produce its third locally assembled car, with an annual production target of 17,000 units, split between the local market and export.
The interest from major car manufacturers in expanding operations in Africa is driven by Egypt’s Automotive Industry Development Program (AIDP), which offers incentives to boost local production, making it attractive for companies to manufacture in Egypt and cater to both local and regional markets.
Despite a shrinking car sales market in Egypt, there is a growing demand for fuel-efficient vehicles, presenting an opportunity for automakers like Nissan to thrive in the region.
Nissan’s plan includes producing more of its popular Sunny model cars and introducing a new model with a significant portion of parts sourced locally in Egypt.
With an additional investment of $2 million to increase production capacity, Nissan Egypt aims to boost its export revenue, which has already reached $150 million, by 50% in 2024.