The deal is worth LE323 million.
Minister Mohamed Ahmed Morsi clarified that the local component in that bus is 60 percent.
The launch of the new bus comes within the framework of an alliance led by the Arab Organization for Industrialization, in which several companies.
The electric vehicle is dubbed City Bus.
Cairo launched Tuesday a trial operation of its first electric bus, as a prelude to deploy more buses into service at the public transport sector, along with natural-gas powered buses in the governorate.