Egypt’s Minister of Industry, Khaled Hashem, has discussed executive steps to increase local content in the automotive industry and manufacture vehicle bodies entirely in Egypt during an expanded meeting with the Presidential Advisory Council of Egyptian Scientists and representatives of automotive manufacturers and component suppliers.
The meeting reviewed an automotive development study prepared by the council that aims to double vehicle production in Egypt over the next five years while deepening the localisation of automotive components, particularly metal parts and vehicle bodies, to strengthen the country’s competitiveness and position Egypt as a regional automotive manufacturing hub.
Hashem announced the formation of a joint committee comprising representatives from the Ministry of Industry, the Presidential Advisory Council, and automotive manufacturers to develop an executive framework for implementing the study’s recommendations.
He added that the committee would meet regularly to monitor progress and translate the recommendations into practical outcomes.
Discussions focused on establishing an integrated automotive ecosystem linking vehicle assembly plants with domestic supply chains capable of producing components that meet the global standards of international automakers.
Participants also highlighted the role of Egyptian engineering expertise in vehicle design, tooling, industrial processes, and testing.
Future proposals included expanding the domestic supply of steel sheets for additional vehicle models assembled in Egypt, increasing exports of locally manufactured components to regional markets through cooperation with global parent companies, developing lightweight materials to improve fuel efficiency, and preparing local manufacturers to produce metal components required for electric vehicles.
Hashem stressed that the ministry’s objective is to move beyond vehicle assembly and establish a fully integrated automotive manufacturing industry covering every stage of the value chain.
“Assembly is only one step toward making Egypt a true automotive manufacturing nation through local component production, technology localisation, and the development of a competitive industrial base capable of serving both domestic and export markets,” he said.
The minister also revealed that the ministry is working to attract investments from specialised foundry companies as part of efforts to deepen local manufacturing in heavy and engineering industries, particularly the automotive sector.
He said these efforts would be implemented alongside Egypt’s Automotive Industry Development Programme (AIDP), with a focus on technology transfer, upgrading existing factories, and establishing integrated production facilities.
In addition, Hashem said the Ministry of Industry is coordinating with the Ministry of Finance to launch a national vehicle scrappage and replacement programme.
The initiative will offer incentives to encourage citizens to replace ageing vehicles with newer, more efficient models, boosting demand for locally manufactured vehicles while generating additional scrap metal for domestic steel production.
He noted that maximising the use of locally available scrap metal has become a strategic priority to reduce imports and secure raw materials for Egypt’s iron and steel industry.
Representatives of automotive manufacturers outlined their ongoing efforts to increase local content and value addition in vehicle components, expressing their readiness to expand domestic production of metal vehicle structures, provided sufficient raw materials and skilled labour are available. They said this would enable them to demonstrate the capabilities of Egypt’s automotive manufacturing sector to their global parent companies.
