JV plans USD 100 mn investment to localize the production of Geely cars in Egypt

Made in China Egypt: Kuwait’s Ali Alghanim & Sons Automotive, Saudi’s Mohamed Yousuf Naghi Group, and Egypt’s Organi Group have launched a joint venture dubbed Auto Mobility that will invest USD 100 mn into localizing the production of cars from Chinese automobile giant Geely, Asharq Business reports.

The plan: Auto Mobility will localize the assembly of Geely cars in Egypt,developing points of sales, and exporting to African and Middle Eastern markets, said the company’s chairman Fahd Ali Al Ghanim. The company plans to start rolling out a limited number of vehicles by 4Q 2024, Al Ghanim added.

Remember: The trio behind Auto Mobility — along with local firm Al Safi Group — teamed up in late2022 to establish Global Auto Group (GAG), the local agent of BMW and Mini. GAG signed a binding framework agreement in November with the Madbouly government to assemble cars locally, but no further details about the car brand or the location, size, and cost of the project were provided at the time.

EVs in the cards? Auto Mobility will start with conventional vehicles, but it will study producing electric cars at a later stage, Al Ghanim told the outlet.

ICYMI- We’re getting serious about our local auto industry: As part of the recently relaunched Egyptian Automotive Industry Development Program (AIDP) to localize the automotive industry and its feeder industries, the Madbouly government is exploring the creation of a new auto industrial zone. Recent government incentives for the industry and efforts to drum up investment have led to foreign companies eyeing up new auto plants, local companies planning to expand their operations, and Egyptian companies teaming up to assemble foreign car brands locally.