Egypt Aims to Secure Affordable Electric Cars
Sharif Al-Sayyad, Chairman of the Engineering Export Council of Egypt, is working to leverage the challenges faced by Chinese electric vehicles (EVs) in the U.S. and Europe to introduce affordable electric cars for Egyptians.
He believes that Egypt can attract leading Chinese EV manufacturers to the country. Initially, he is poised for the production of key components such as motors and batteries, and eventually for full-scale vehicle production. This move could transform Egypt into a competitive player in the global electric vehicle market.
Egypt currently has five private companies that provide charging stations for electric vehicles. Additionally, the government is reviewing applications from three other companies aiming to offer charging services. This growing infrastructure is essential to support the future expansion of electric vehicles in Egypt.
Global Trade Barriers to Chinese Electric Vehicles
Chinese electric vehicles are facing substantial trade restrictions in key global markets. In May, the United States increased tariffs on Chinese electric cars from 25% to 100%. Following this, the European Union imposed a temporary anti-subsidy tariff of 37.6% on Chinese electric cars in July. By August, Canada also increased its tariff from 6.1% to 100%.
Despite these hurdles, China remains a dominant force in the electric vehicle industry. A report from the World Economic Forum indicates that Chinese electric vehicle exports have surged by 13,300% since 2017, reaching $42 billion in 2023. China now produces nearly 70% of the world’s electric vehicles.
Al-Sayyad emphasized, “China is the next big player in electric vehicles, but it faces export challenges due to high tariffs.” He believes Egypt can capitalize on these challenges by attracting Chinese manufacturers to produce vehicle components locally, thereby boosting Egypt’s automotive sector.
Strategic Advantage for Egypt
Egypt is strategically positioned to attract significant investment in the electric vehicle industry. The country offers low-cost skilled labor, favorable trade agreements that provide access to one-third of the world’s markets, and a prime geographical location.
By focusing on electric vehicle production, Egypt has the potential to become a key regional hub, especially as the country seeks to regain its competitive edge in the automotive industry after losing ground to Morocco and South Africa in traditional gasoline-powered vehicles.