Egyptian Automotive & Machinery
The Egyptian automotive industry is undergoing a government-supported revival, seeking to become a regional manufacturing hub, particularly for electric vehicles (EVs). Following a period of significant decline after the 2011 revolution, the sector is recovering with the help of international partnerships and renewed investment. Challenges, including high import costs and foreign exchange volatility, have historically hampered its growth.
Government strategy and incentives
In 2022, the Egyptian government launched the Automotive Industry Development Strategy (AIDP) to boost local manufacturing. Key components of the strategy include:
Production goals: The AIDP targets an annual production of 400,000–500,000 vehicles, with 25% allocated for export.
Local content requirements: Incentives are offered to local carmakers who increase their percentage of domestic components beyond the 45% minimum.
EV development: A fund was established to support the eco-friendly automotive industry, with state-owned El Nasr Automotive Manufacturing Company set to produce Egypt's first domestically made electric buses in 2025.
Foreign investment: To attract foreign currency and investment, the government implemented a limited-time program in 2025 allowing Egyptian expatriates to import personal vehicles duty-free
Market performance and sales trends
After suffering from economic instability and import restrictions, the market has seen recent signs of recovery:
Post-pandemic slump: Vehicle sales plunged by over 50% in 2023 due to currency depreciation and import curbs.
2024 recovery: The market began to recover in 2024, with total sales increasing by over 12% to nearly 97,000 units.
2025 acceleration: Sales accelerated in the first seven months of 2025, surging by 83% year-over-year.
Brand performance: In the first half of 2025, Chinese brands surged to a 37.1% market share. Chevrolet also gained significant traction, climbing to the top spot in sales.
Chinese car dominance: Chinese brands like Chery, BYD, and MG are gaining popularity due to affordability and increased features, challenging higher-priced competitors
Key players
Many international companies operate in Egypt through joint ventures and local partnerships:
General Motors: A long-standing player, GM announced local production of the 2025 Chevrolet Optra at its 6th of October plant in January 2025.
Chinese manufacturers:
Mansour Group partnered with SAIC Motor to build a $135 million plant for local MG car production.
Geely opened a new plant in 6th of October City in January 2025 to assemble the Coolray and Emgrand models.
Other key companies: Other major players include Nissan Motor Egypt, GB Corp, and the state-owned El Nasr Automotive Manufacturing Company
Challenges and outlook
Despite the positive trends, Egypt's automotive sector faces persistent hurdles:
Currency volatility: Fluctuating foreign exchange rates increase the cost of imported components and vehicles, directly impacting prices and profitability.
Import restrictions: The government's new "one car every five years" rule for personal imports and high tariffs on large engines aim to control foreign currency outflow but also limit consumer options.
EV market immaturity: Though targeted for growth, the EV market remains a small fraction of overall sales due to high prices and underdeveloped charging infrastructure.
Competition from imports: The influx of affordable Chinese cars is intensifying competition for both local assemblers and premium international brands.
Future growth: For the sector to sustain its recent growth, analysts suggest the need for continued macroeconomic stability, foreign currency availability, and deeper integration of the local supply chain
ABOUL FOTOUH
Established in 1978 Aboul Fotouh Automotive transformed into one of the largest industrial conglomerates in the MENA region. We are a proud automotive Company that has 45 years of experience in the automobile industry
MANSOUR AUTOMOTIVE
Mansour Automotive is a leading Egyptian and regional automotive distributor established in 1975 by the late Mr. Loutfy Mansour. Since its inception, the company has been a pioneer in the industry, setting the stage for the development of the automotive industry across its countries of operation
Egyptian German Automotives Co.
EGA-S.A.E
EGA BRAKE DISC PLANT WAS ESTABLISHED IN 2002 THE PLANT STARTED WITH ONE MACHINING LINE WITH APPROX. 300,000 BD/ANNUM INSTALLED CAPACITY.
While building-up the experience within an international OEM environment, EGA adopted a clear strategy to develop the BD division, and to expand the business volume by being a supplier not only to Daimler AG but also to other automotive OEMs
GB Corp
GB Auto is a leading automotive player in the Middle East, with a strong footprint in key sectors. Our primary lines of business are: Passenger Cars, Motorcycles & Three-Wheelers, Commercial Vehicles & Construction Equipment, After-Sales and Tires, Other than its presence in Egypt, GB Auto has operations in Iraq as well as
MCV
MCV manufacturing commercial vehicles was established in 1995 by our entrepreneur Eng. Karim Ghabbour, where the aim was to supply our global customers around the world with transport solutions through innovative, reliable, high quality, and cost effective products and services. We are identified as the top bus manufacturer in the Middle East and Africa
El Nasr Automotive Manufacturing Company
El Nasr Automotive Manufacturing Company, a state-owned Egyptian enterprise under the Ministry of Public Business Sector. Established in 1960 by presidential decree as part of Egypt’s ambitious initiative, it initially focused on car assembly before transitioning to full-scale manufacturing
