A Renault car dealership on Thursday in Strasbourg, France. Renault shares plunged over 20 percent before recovering some - Vincent Kessler/ Reuters
CAIRO – 14 March 2018: A delegation from French multinational Group Renault is conducting field trips to a number of local car assembly lines, with the Egyptian International Motors Company (EIM) – their agents in Egypt.
These field trips come as a part of Renault’s studies to assemble some of their models in Egypt, according to an Egyptian local newspaper.
A source at EIM told Al-Mal newspaper that this visit comes in light of EIM's plans to transform from being a pure importer to a local assembler.
The news followed Kia Motors’ announcement of signing contracts on Monday with its local agents to assemble KIA Cars in Egypt with an investment of LE 4.24 million during the upcoming five years.
Chairman of Alkan Holding - which owns EIM - Khaled Nasser said that assembling Renault is still understudy, adding that EIM seeks to hold meetings between representatives from KIA Motors and local component manufacturers, with the aim of supporting the marketing and export of components.
Minister of Trade Tarek Kabil said Monday that the current investment in the auto industry is about $3 billion, of which $1.6 billion is in the automotive industry and $1.4 billion is in the feeder industries.
There are about 86,000 workers that work in the auto and feeder industries, Kabil noted.
The minister added that the car industry in Egypt has about 170 companies, including 19 companies that manufacture and assemble cars of all kinds, which include passenger cars, buses, micro and minibuses and transport vehicles, and more than 150 companies engaged in the manufacture of a number of components of cars.
Local Market volume reached 100,000 cars in 2017, 50 percent of which are locally produced, he said.
The minister added that the exports of the automotive sector and the feeder industries amounted to $700 million in 2017.
Meanwhile, Egypt postponed applying the decline of customs on European Union assembled cars to zero till 2020.