Egypt’s automotive sector has faced a significant downturn in sales, with data from the first eight months of 2023 revealing a dramatic 65.5% decline compared to the previous year. According to the Automotive Information Council (AMIC), passenger cars, buses, and trucks all experienced steep drops in sales, underscoring the challenges the industry is currently facing.

The crisis, exacerbated by the lingering global chip shortage and soaring shipping costs due to the Russia-Ukraine conflict, depleted inventories and drove up prices, dampening consumer demand.

The crisis in Egypt’s automotive sector has been intensified by the ongoing global chip shortage and soaring shipping costs, partly due to the Russia-Ukraine conflict. These challenges have depleted inventories and driven up prices, dampening consumer demand. In response, Prime Minister Mostafa Madbouly announced in August that the government is introducing incentives to promote the localization of the automotive industry. This initiative aligns with Egypt’s broader strategy, launched in 2022, to position itself as a key gateway for emerging vehicle markets in Africa.

In a meeting with Prime Minister Madbouly to discuss the localization efforts, Nissan Egypt’s Managing Director Mohamed Abdel Samad revealed the company’s plans to invest $55.9 million in the local market by 2026.

As part of its expansion efforts, Nissan plans to establish a free zone at Alexandria Port in November 2024, with an initial investment exceeding $2 million. This 6,000-square-meter facility aims to streamline the export of cars and spare parts, contributing to the generation of foreign currency for Egypt.

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