General Motors believes Egypt has the fundamentals to become a regional centre for automotive manufacturing and exports to the Middle East and Africa, according to Sharon Nishi, Chair and Managing Director of General Motors Egypt & Africa.
Speaking to Daily News Egypt, Nishi said the company is working closely with the Egyptian government to develop supportive policies aimed at boosting exports and deepening local manufacturing. She noted that Egypt’s recently announced automotive industry strategy represents a critical first step towards building a more structured and competitive sector.
“Years ago, there was no comprehensive automotive policy in place. Today, we have a clear framework, but this is only the beginning,” Nishi said, stressing the need for sustained cooperation between the public and private sectors to raise localisation levels.
Localisation and ongoing investments
Nishi highlighted General Motors as one of the most advanced automakers in Egypt in terms of local manufacturing depth, explaining that developing a robust local supply chain requires long-term investment and capacity building.
She revealed that the company is close to achieving a local content rate of 50%, noting that the progress made during the first year of local production of the Chevrolet Optra is unprecedented in the Egyptian market. This, she said, qualifies General Motors for the government’s Automotive Industry Development Programme (AIDP), reflecting the level of localisation already achieved.
Market recovery
Commenting on overall market performance, Nishi described 2025 as an exceptional year for Egypt’s automotive sector, with growth reaching nearly 56% and marking a strong recovery phase.
She expects growth to normalise in 2026, with an estimated increase of around 15%, signalling a transition towards what she described as “healthy and sustainable growth”.
Shift towards electric vehicles
Electric and other new-energy vehicles currently account for around 4% of total car registrations in Egypt, according to Nishi. She expects this share to rise to between 5% and 6% in the near term, supported by a wider range of consumer options following the launch of the Captiva EV and Spark EV models.
Nishi emphasised that the shift to electric mobility will be gradual, noting that local EV production depends on several factors, including market demand, the availability of reliable charging infrastructure, and the readiness of local suppliers to provide EV components. Government policies will also play a role, particularly given current customs exemptions for fully imported electric vehicles.
She noted that Egypt currently has around 1,300 charging points nationwide—a relatively strong figure compared with many countries—and added that General Motors’ electric models can be charged using standard household outlets, making them suitable for daily urban use. Charging costs, she said, are more than 10% lower than traditional fuel costs.
Nishi added that General Motors is continuing to cooperate with the government to expand charging infrastructure and contribute to the development of a “white paper” outlining Egypt’s electric vehicle strategy.
Egypt as an export platform
According to Nishi, Egypt’s strategic location, skilled workforce, and supplier base built over more than four decades—combined with a growing government focus on exports—position the country as a strong candidate to serve as a regional automotive export hub.
“This is our objective, and we are working towards it seriously,” she said, adding that achieving this goal will require clear policies, targeted incentives, and close collaboration between the public and private sectors.
Competition and market confidence
Addressing rising competition, particularly from Chinese automakers, Nishi said increased competition ultimately benefits both the market and consumers. She stressed that General Motors’ strength in Egypt extends beyond its vehicles to include after-sales services, spare parts availability, warranty support, and a wide distribution network through its partnership with Mansour Automotive.
Nishi noted that General Motors ended 2025 as the market leader in Egypt. “We are number one in this market. We have already launched two electric models, and more are certainly on the way,” she said.
