Minister of Industry Khaled Hashem said on Thursday that the government is continuing to implement a package of incentives and support measures to ensure the success of the National Automotive Industry Development Programme and attract global manufacturers capable of producing at least 100,000 vehicles annually in Egypt.
His remarks came during a meeting with a delegation from Mercedes-Benz Egypt, headed by the company’s Chief Executive Officer, Thomas Wagershauser.
The meeting was attended by Alaa Salah, Head of the Automotive Unit at the Ministry of Industry, and Mohamed Sami, Assistant Minister for Strategic Affairs.
The two sides discussed Mercedes-Benz Egypt’s plans to expand its manufacturing operations in the country and explore opportunities to export locally produced vehicles to neighbouring markets.
They also reviewed the company’s production activities at its facility in 6th of October City, which currently has an annual production capacity of around 5,000 vehicles and a local content ratio of approximately 45%.
Hashem said the National Automotive Industry Development Programme aims to attract leading international manufacturers while supporting the growth of local component industries and strengthening domestic value chains.
He noted that the programme offers a range of incentives, including financial support linked to higher local content and value addition, as well as investment, environmental, tax and export incentives.
The minister also highlighted the government’s commitment to expanding electric vehicle production and increasing Egyptian automotive exports to regional and international markets as part of its strategy to position Egypt as a regional hub for automotive manufacturing.
He added that the ministry is working to regulate the automotive market and improve consumer services by ensuring the availability of authorised service centres, high-quality after-sales services and genuine spare parts throughout the operational life of vehicles.
For his part, Wagershauser reaffirmed Mercedes-Benz Egypt’s commitment to expanding its operations in the country and strengthening its distribution network, describing the Egyptian market as one of the company’s most important markets in the region.
