The Ministry of Industry and Trade announced that it will present the final draft of the automotive industry enhancement strategy to the cabinet during its weekly meeting on Wednesday, after amending a number of the strategy’s provisions.
The strategy aims to enhance the local automotive industry through a specific timetable, to raise the ratio of domestically manufactured components from 45% to 60%. The strategy will require agents and dealerships of imported cars to export an amount of domestic automotive components that is equivalent to a specified percentage of the value of the cars they import.
The government seeks to adopt a strategy that protects—and further stimulates—the automotive industry in Egypt from the fierce competition of imported cars. It discussed the strategy three times with the economic ministerial group, three more times in the cabinet, and recently presented it to President Abdel Fattah Al-Sisi.
Prime Minister Sherif Ismail assigned Minister of Trade and Industry Tarek Kabil to present the final draft of the automotive industry enhancement law to the cabinet.
The law aims to enhance the automotive industry and provide the needed elements to help the industry advance, as well as construct a large industrial base to encourage the injection of more local and foreign investments into the sector. It also aims to create cooperation with various leading countries in order to benefit from their experiences and learn advanced technological methods in the automotive industry.