Fitch Solutions expects Egypt’s automotive sector to maintain a positive growth trajectory over the medium term, supported by the government’s strategy to transform the country into a regional hub for cost-efficient vehicle manufacturing.
Vehicle production is projected to increase by 5.9% in 2026, driven by government incentives aimed at deepening industrial localisation and attracting greater investment from global automakers, particularly Chinese manufacturers, including Geely, Chery, Exeed, and MG.
Under Egypt’s Automotive Industry Development Programme (AIDP), the government targets raising annual vehicle production to 100,000 units, increasing local value-added content to approximately 60%, and expanding the domestic manufacturing component to over 35%.
The programme also seeks to accelerate the development of electric vehicle (EV) manufacturing and boost the country’s automotive supply chain.
Egypt’s EV sector is expected to record significant long-term growth, fuelled by continued investment in local production capabilities and the expansion of charging infrastructure.
EV sales are projected to achieve an average annual growth rate of 23.8% between 2026 and 2035, supported by government incentives and tax exemptions for locally manufactured electric vehicles.
