The Egyptian Auto Feeders Association (EAFA) presented a project to the presidency which would see the establishment of a factory for the manufacture of export-ready Egyptian cars, chairperson of the association Ali Tawfik said.
This comes after the cabinet and the Ministry of Industry expressed an interest in the project. The project aims to establish a factory in the East Port Said area with a production capacity reaching 1m cars annually.
Tawfik said that the project aims to gradually increase its production capacity, beginning by producing 100,000 cars in the first year. The factory will produce two models of the same car brand to cover the differing requirements of the consumers. The first model will run at 1,000/1,300 cc, and the second at 1,400/1,600 cc.
The Ministry of Industry is working on locally manufacturing 80% of the car’s components within five years, and is currently working on a list of those components. Their aim is to export 50% of the company’s output.
In the project studies, Tawfik requested that a plot of land in the East Port Said area be allocated free of charge for 50 years for the establishment of the factory .
The government is calling for domestic automotive companies in Egypt to participate in the project, according to its required production capacity. Companies in the automotive feeder industry will submit their proposals to manufacture the required quantities of car components. They will also express their willingness to carry out new investments and projects in the components industry.
The presidency has welcomed a number of international companies in recent months to discuss investment opportunities in the automotive manufacturing field in the Egyptian market, in addition to the Ministry of Industry’s presentation of the final draft of the automotive manufacturing development law project to the cabinet of ministers.