Egypt’s EV ambitions: Opportunities, challenges on the road ahead

The government’s ambitious plan, outlined in the Egypt Vision 2030, aims to produce no less than 500,000 electric cars annually by the end of the decade.

Working as hard as ever to achieve its EV ambitions, Egypt has actively courted global automotive manufacturers, offering incentives such as tax cuts and subsidised land to entice lure them to set up production facilities in the country.

Over the recent years, several international companies have responded positively, announcing plans to establish joint ventures or build factories in Egypt.

In May, the Egyptian investment company GV Investments signed a partnership agreement with China’s car manufacturing giant FAW Group to produce affordable EVs for Egypt. 

Under the deal, a subsidiary of Egypt’s GV Investments is slated to begin local production of FAW’s cheapest model during the first quarter of 2025.

According to Automobile expert Gamal Askar, Egypt has the potential to play a significant role in the global EV supply chain. However, the road to achieving such vision is riddled with both promising opportunities and formidable challenges.

 “First, the country enjoys a strategic geographic position at the crossroads of Europe, Africa, and Asia, making it a hub for trade and export. This allows Egypt access to markets in Europe, where regulations are pushing for the rapid adoption of EVs, and Africa, where the demand for affordable transportation solutions is growing,” Askar said.

“The Egyptian government has also been proactive in encouraging foreign investment in the EV sector. New legislation offers tax breaks and incentives for companies manufacturing or assembling electric cars in Egypt, while infrastructure projects are underway to build charging stations across major cities,” he added.