Egypt to limit car imports to 1 per importer over next 5 years starting Friday

This move comes at a time when the Egyptian car market is facing significant domestic and external challenges. These include inflationary pressures, the devaluation of the Egyptian pound against the dollar, and the ongoing geopolitical tensions, particularly the war in Ukraine, which have had far-reaching impacts. These factors have resulted in a significant decline in car sales and purchases.

The investment ministry noted that importers must provide a bank statement to confirm their financial capacity to make such purchases.

Additionally, the importer is required to pay for the vehicle using any approved method through banks operating in Egypt. However, this rule does not apply to cars intended for diplomats or Egyptians working and living abroad whose payments are received from abroad.

The ministry clarified that the new regulation does not apply to cars that were shipped or had already arrived at Egyptian ports before the decision's effective date, nor to those for which letters of credit were opened before the decision took effect. It also does not apply to cars intended for foreign embassies or international organizations.

Egypt automotive industry outlook
 

Despite these challenges, Egypt’s vehicle manufacturing and assembly sector is poised for growth. Plans are underway to introduce four to five new car models in 2025, including two produced in new factories by the Al-Qasrawi and Ezz Al-Arab Groups. Established manufacturers such as Nissan and Exeed are also expanding their presence.

The government’s automotive strategy for 2024-2030 targets an annual production of 400,000 to 500,000 vehicles, with 25 percent of this output planned for export. A key focus area for development is electric vehicles (EVs), which will play a significant role in the sector’s growth.