A Chinese automobile manufacturer, Geely, has joined forces with local firm Auto Mobility to inaugurate an assembly plant in Egypt. This plant is set to produce 30,000 vehicles annually, meeting the needs of both the local market and export demands.
Egypt’s automotive industry growth can be attributed to government policies implemented over the years, attracting investments like Geely’s. These long-term strategies have enticed various Chinese automakers to establish manufacturing facilities in Egypt.
One of the pivotal policies, the Automotive Industry Development Program (AIDP), provides incentives for local production and assembly. Coupled with Egypt’s strategic location in the Middle East, the country has become a focal point for exporting luxury vehicles to neighboring oil-rich nations.
Recognizing the potential, Chinese brands such as Chery and SAIC Motor have set up local assembly plants in Egypt. This trend was triggered by a downturn in the Chinese market in 2012, prompting automakers to seek new opportunities in regions like Egypt with promising markets and supportive policies.
The influx of Chinese car manufacturers in Egypt has created a mutually beneficial relationship, driven by robust local demand. Egypt is now positioned as a key automotive manufacturing hub in Africa, following closely behind South Africa.