NASR, Al Safy Group sign EGP 500 mln deal to manufacture cars locally
This announcement was made during a celebration marking production resumption at NASR, held in the presence of Prime Minister Mostafa Madbouly.
This collaboration will strengthen Egypt’s position as a regional hub for automotive manufacturing. This partnership will contribute to the country’s long-term economic growth and industrial development by meeting domestic market demand and expanding exports to neighbouring countries.
As Egypt seeks to become a regional hub, Egypt introduced a national strategy to advance the automotive sector, meet the growing domestic demand for vehicles, attract global companies to invest in the Egyptian market, and boost exports in 2022.
This event symbolized Nasr Automotive’s return to its original mission of locally producing various types of cars, leveraging Al Safy Group’s extensive manufacturing, distribution, and marketing capabilities.
Earlier in 2024, the two partners established a new company, SN Automotive, as part of their shared vision to develop the Egyptian automotive sector and enhance the national economy.
SN Automotive will oversee all aspects of the business, including financing, obtaining assembly and manufacturing rights, and distributing cars under well-known global brand names.
The company will be capitalized at EGP 500 million, with Al Safy Group holding 76 percent of the equity and Nasr Automotive holding 24 percent.
Reem Safy, CEO of business development at Al Safy Group, projected that the initial investment in the project will reach $40 million, noting that further investments will take place.
Furthermore, Safy highlighted that SN Automotive will manufacture a range of car models at NASR factories to meet the needs of various customer segments.
She added that the company has already signed an agreement with a major Chinese car manufacturer, and a foreign partnership will be announced by mid-2025. This aligns with the launch of the first three locally assembled models, one electric and the other gasoline-powered.
According to Safy, this move aims to serve the Egyptian and North African markets, focusing on increasing local manufacturing capabilities.
Moreover, she noted that the company has contracted automated welding lines for these three models and secured an exclusive agency to manufacture Yutong buses, in addition to producing light- and heavy-duty trucks.
Al Safy Group will manage the entire supply chain, including importing components, sourcing supporting materials from local manufacturers, distributing vehicles, managing showrooms, and providing after-sales services.
Meanwhile, NASR will increase the local content in manufactured vehicles from 49 percent to over 60 percent, contributing to developing local industries and creating new job opportunities.
For his part, Shadid emphasized the strategic importance of the partnership in supporting Egypt’s vision for developing its automotive industry and strengthening its regional position, which aligns with the country's goals for public-private partnerships.
“This partnership combines our deep expertise in automotive manufacturing with Al Safy Group’s proven capabilities, marking a significant step towards providing high-quality, competitively priced vehicles for the Egyptian market and boosting our contribution to the national economy," he stated.
NASR is a state-owned company established in 1959 as Egypt's first car manufacturer. Meanwhile, Al Safy Group is a family-owned conglomerate with a diversified investment portfolio founded in 1985 in Egypt.