Egypt takes the first step toward a becoming a regional auto powerhouse

The inauguration of Geely's first car manufacturing plant in Africa and the MENA region, located in Egypt’s 6 October City, marks a turning point in the nation’s journey toward becoming a regional hub for automotive manufacturing. This milestone underscores the Egyptian government's broader strategy to localize the automotive industry, attract foreign investment, and foster economic growth.

Egypt's strategy to localize the automotive industry, initiated in 2022, has set ambitious goals to position the country as a competitive player in the global automotive market. By leveraging its strategic geographic location, skilled workforce, and supportive policies, the Egyptian government aims to stimulate local production, meet growing domestic demand, and boost vehicle exports.

Geely’s plant represents the realization of this vision, producing up to 10,000 vehicles annually and facilitating the export of an estimated 30,000 cars. This development not only strengthens the country's manufacturing capabilities but also reflects foreign investors' confidence in Egypt's business environment, even amidst global economic challenges.

For Geely, this new factory signifies more than just an expansion—it is a commitment to advancing local production and fostering technological innovation in the region. The factory will manufacture the Emgrand 2025 sedan and the Coolray 2025 SUV, both based on Geely’s advanced B-segment Modular Architecture (BMA) platform. These models promise efficient use of space, advanced safety features, and an enhanced driving experience, tailored for Egyptian and regional markets.

Geely has also emphasized local sourcing by developing 14 major components within Egypt, achieving a local content rate exceeding 45 percent. The company plans to increase this rate, which will create additional opportunities for local suppliers and enhance the plant's overall contribution to the economy.

The establishment of the Geely factory injects approximately $250 million in direct investment into Egypt’s economy. It has already begun generating hundreds of job opportunities, with a broader impact expected as the factory scales operations. Local assembly and manufacturing processes will also spur the growth of ancillary industries, including logistics, component production, and specialized training programs for workers.

Moreover, the factory’s focus on vehicle exports will enhance Egypt’s trade balance while solidifying its position as a regional player in the global automotive supply chain.

The Egyptian government has played a pivotal role in this achievement by creating an investment-friendly climate through targeted incentives and regulatory reforms. Prime Minister Mostafa Madbouly emphasized the government's commitment to supporting such ventures, which are crucial for economic diversification and industrialization.

This support extends beyond regulatory facilitation. It includes collaborative efforts with manufacturers to expand local production, develop the supply chain, and enhance export potential. The government’s efforts have not only attracted Geely but also other global and regional players looking to tap into Egypt’s burgeoning automotive market.

Geely’s choice to establish its first Completely Knocked Down (CKD) factory in Egypt is a testament to the nation's strategic importance in the global automotive industry. With over 40 Geely sales and service centers already operational across the country, the brand has demonstrated its commitment to serving Egyptian consumers while driving innovation in the sector.

The broader implications of this milestone extend beyond Egypt’s borders. As Geely’s presence grows, it could inspire other global manufacturers to invest in Africa, recognizing the continent’s untapped potential in automotive manufacturing.

Geely’s new factory in Egypt is not just a business milestone; it is a beacon of what is possible when government strategy aligns with private sector ambition. This partnership has set the stage for Egypt to emerge as a leader in automotive manufacturing in Africa and the MENA region.

As the industry evolves with trends like electrification and smart mobility, Egypt’s proactive approach to localizing automotive production positions it well to capitalize on future opportunities. For now, the roar of the first Geely engines assembled on Egyptian soil heralds a promising future for the nation’s automotive industry.