Egyptian Alkan, Chinese BAIC ink deal to establish EVs plant in Egypt

The agreement, announced by the Ministry of Industry and Transport, was formalized in a ceremony attended by Minister of Industry and Transport Kamel El-Wazir and Zhao Pengfei, Vice President of BAIC, and Khaled Nosseir, Chairman of Alkan Holdings.

Factory Overview
 

-Location and Timeline: The factory will be constructed on a site spanning 120,000 square metres, with production slated to commence by the end of 2025.
- Production Capacity: The facility aims to produce 20,000 electric cars in its first year, with a target to ramp up production to 50,000 cars by the end of its fifth year.

Economic Impact
 

- Local Input: The project plans to incorporate 48 percent local inputs, with an objective to increase this figure to 58 percent.
- Job Creation: Approximately 1,200 new job opportunities are expected to be generated from this venture.

Government Support
 

Minister El-Wazir emphasized the industry and transport ministry's commitment to enhancing local production and exporting, particularly within the Middle East and Africa.

He indicated that the ministry is ready to support international automotive companies in their efforts to produce and expand within the Egyptian market, thereby fostering investment and job creation for youth.

Additional Initiatives
 

The ministry announced plans to offer incentives to boost local car manufacturing in July.

In September 2023, the Egyptian cabinet approved a golden license for EgyptSat Auto, which is set to inaugurate a factory for electric vehicles, expected to begin production by the end of 2024.

Egypt inugrated a strategy to localize the automotive industry in June of 2022.

In February of 2024, Mercedes Benz announced its intentions to manufacture electric vehicles in Egypt in the near future, stressing the company considers Egypt a highly promising market with siginificant potential for growth.

Banks are also expanding in financing purchases of electric vehicles such as CIB, HSBC and many others with loan spanning up to 12 years.