International cooperation in the automotive industry sector is generating enthusiasm in Egypt, with the recent signing of an agreement between the Chinese company BAIC and Alkan Auto for the establishment of an electric car production plant. This initiative marks an important step in transforming Egypt into a regional industrial hub and illustrates the commitment to promoting the localization of the automotive industry and its associated industries in the country.
The aim of this partnership is to boost the Egyptian automotive industry and strengthen the presence of the private sector in the field of industry. The Minister of Industry and Transport, Kamel al-Wazir, expressed his support for this innovative project, stressing the government’s willingness to support this initiative and facilitate the necessary steps for its realization.
The General Agency for Industrial Development has already reserved an industrial plot for the project, thus demonstrating its readiness to support this new venture. The Minister also stressed his department’s readiness to provide all necessary support to international companies in the automotive sector in order to produce and develop in the Egyptian market.
The future plant, whose production is expected to start at the end of 2025, will occupy an area of 120,000 square meters. It aims to meet the needs of the local market while exporting to the Middle East and African markets. With an initial production of 20,000 cars in the first year, the volume is expected to reach 50,000 cars by the end of the fifth year. In addition, the project emphasizes the local component, aiming to increase it by 48% to 58%.
In terms of economic impact, this initiative is expected to generate approximately 1,200 new jobs, thus providing work opportunities for the country’s youth. The objective is clear: to promote real investments, strengthen the local industry and contribute to the creation of sustainable jobs.
In conclusion, this strategic collaboration between China and Egypt in the field of electric car production opens new prospects for the Egyptian automotive industry. It illustrates the country’s desire to promote foreign investment, strengthen its industrial base and contribute to its overall economic growth.