Egypt targets annual production of 100,000 electric vehicles by 2032

Egypt is stepping up efforts to build a domestic electric vehicle (EV) industry, with plans to produce up to 100,000 vehicles annually by 2032 as the government looks to reduce reliance on imports and expand its manufacturing capabilities.

The plans were outlined during a meeting chaired by Prime Minister Mostafa Madbouly, who reviewed the government’s strategy to localize automotive production and develop supporting industries, including batteries, electric motors and vehicle components.

Egypt’s Industry Minister, Khaled Hashem, said an unnamed international automaker plans to begin manufacturing three EV models in Egypt in 2027, with locally produced components expected to account for 27% of supply by 2032.

The announcement follows the launch of local production of the Dongfeng MAGE EV, which contains up to 45% Egyptian-made components, marking progress in the country’s efforts to move beyond vehicle assembly.

Madbouly said automotive manufacturing remains a government priority, citing Egypt’s large domestic market and opportunities to export to neighboring countries. The initiative also supports the country’s transition toward cleaner transportation and reduced dependence on petrol and diesel.

A central part of the strategy is increasing the production of automotive components manufactured in Egypt, rather than relying on imported parts.

Industry Minister Khaled Hashem outlined an agreement involving an international company, El Araby Group and the Arab Organization for Industrialization (AOI) to manufacture seven types of metal automotive components, with a combined annual production capacity of 8 million pieces.

The government is also looking to develop domestic EV battery production. An international company is partnering with Egyptian bus manufacturer MCV to supply locally sourced batteries for buses, while discussions are underway with another manufacturer to supply batteries for vehicles produced in Egypt.

Separately, the ministry is exploring a partnership to manufacture electric motors locally. To support the industry’s technical needs, Egypt is working with the Brazilian Association of the Mould and Die Industry and the Productivity and Vocational Training Department to establish a specialized vocational school focused on mould and die manufacturing. The government’s plans extend beyond manufacturing components to building complete electric vehicles.

Chinese automaker Dongfeng has begun manufacturing electric vehicles in partnership with SN Automotive and state-owned El Nasr Automotive Manufacturing Company, using El Nasr’s existing production lines.

To support industry expansion, the government is developing laboratory testing capabilities and upgrading the Engineering Industries Technology Centre in 10th of Ramadan City to help local suppliers meet production standards.

The Ministry of Industry is also working with international companies to establish EV charging stations and the infrastructure needed to operate them.

These efforts fall under Egypt’s National Automotive Industry Development Programme (AIDP), which provides a framework to attract investment and increase domestic participation in vehicle manufacturing.

Hashem said the government is considering additional incentives to encourage international automakers to establish production facilities in Egypt, positioning the industry as a potential driver of industrial growth and exports.