The Ministry of Industry is intensifying coordination with major global automotive manufacturers to localise vehicle production in Egypt, enabling them to benefit from the incentives offered under the National Automotive Industry Development Programme, Minister Khaled Hashem, said on Thursday.
Minister Hashem met with a delegation from Volkswagen Africa, led by Chairperson and Managing Director Martina Benni, in the presence of Chairman of the Egyptian-German Automotive Company and East Port Said Development Company Karim Sami Saad and representatives from the automotive manufacturing sector.
During the meeting, Minister Hashem noted that the programme aims to increase annual production to 100,000 vehicles by 2030, while strengthening supporting industries and supply chains.
He also emphasised that companies moving early to establish local manufacturing and meet localisation requirements will secure the greatest share of incentives and market opportunities.
He also urged the delegation to expedite the completion of market studies and internal approvals to capitalise on current opportunities and position Egypt as a regional manufacturing hub serving both domestic demand and export markets, particularly in Africa and the Middle East.
Chairperson and Managing Director of Volkswagen Africa affirmed the company’s interest in taking concrete steps towards manufacturing vehicles in Egypt, describing the Egyptian market as one of Volkswagen’s key strategic markets in Africa and the continent’s second-largest automotive consumer market.
She added that the company is currently evaluating the incentives available under the National Automotive Industry Development Programme to enhance the project’s economic feasibility and accelerate implementation plans.
Discussions reviewed ongoing feasibility studies conducted in cooperation with the Egyptian-German Automotive Company, including the use of existing production facilities to optimise costs and timelines, while supporting plans to manufacture electric vehicles in East Port Said, the ministry said in a statement.
It added that the meeting also addressed incentives under the National Automotive Industry Development Programme, including financial, environmental, tax, and export benefits, as well as those provided under the Investment Law.
