CAIRO - 15 April 2026: Prime Minister Mostafa Madbouly said Egypt is ready to grant exceptional incentives to international car manufacturers willing to localize production in the country, as the government steps up efforts to build a stronger domestic automotive industry.
During a meeting on Wednesday to review progress on the national automotive industry development program, Madbouly said the government has already held discussions with several carmakers and reached advanced stages of negotiation. He stressed that the next step is to conclude those talks and move toward large-scale vehicle production in Egypt.
Madbouly said the state attaches strategic importance to localizing the automotive sector by establishing a major industrial base and attracting leading global manufacturers to set up operations in Egypt. He added that electric vehicles are receiving particular attention as part of the government’s push toward cleaner energy and lower dependence on traditional fuels.
Industry Minister Khaled Hashem reviewed the main components of the national program, noting that it is being developed in cooperation with automotive manufacturers.
He said a working group has been formed bringing together members of the Supreme Council for the Automotive Industry, private sector representatives, the Ministry of Finance, the Ministry of Investment and Foreign Trade, and the Automotive Industry Unit. The group is tasked with reviewing the program’s framework, identifying manufacturers’ requirements, and proposing adjustments to make the initiative more flexible and effective.
Alaa Salah, head of the Automotive Industry Unit at the Ministry of Industry, outlined the key requirements currently included in the program, such as minimum annual production volumes per company, target local content ratios, maximum engine capacity, and the share of value added through actual manufacturing processes. These criteria cover both conventional fuel-powered vehicles and electric cars.
He said the program is also designed to offer incentives linked to environmental compliance, the size of new investments, and export expansion opportunities.
Salah added that the Ministry of Investment and Foreign Trade is studying the activation of incentives under Investment Law No. 72 of 2017 for the automotive sector and related feeder industries. He also said the Automotive Industry Unit will propose adding hybrid vehicles to the national program under the environmental compliance incentive framework.
He noted that the Fund for Financing the Purchase of Certain Rapid Transit Vehicles is considering an initiative to encourage the replacement of aging taxis and private cars with new electric vehicles, provided the scheme proves economically viable. In parallel, the Automotive Industry Financing Fund is studying non-financial incentives for feeder industries to ease the cost burden of increasing local manufacturing of components.
Madbouly directed that the automotive file remain high on the Ministry of Industry’s priority list, stressing the importance of delivering clear and tangible progress.
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