Daily News Egypt

Parliament to discuss automotive industry draft law end-February - Daily News Egypt

Advertising Area

Advertising Area

Parliament to discuss automotive industry draft law end-February

Car manufacturers, feeding industries companies invited to attend draft law discussions

The parliament’s industry committee said it would discuss the automotive industry strategy draft law at the end of the month.

Parliamentary and other informed sources said the political leadership paid great attention to the draft law, and the ministries of military production and public enterprise sector were tasked with preparing it in cooperation with auto feeding and manufacturing companies.

The committee invited car manufacturers and feeding industries companies to attend the draft law discussions.

One of the invited companies said they felt the political leadership’s interest in supporting the auto industry in Egypt, especially electric vehicles (EV), through cooperation between the government and the private sector in this regard.

A parliamentary source said the draft strategy plans to increase the local component in EV to 45%, and to increase it to 56-60% within two years.

The strategy would provide EGP 50,000 incentives for each locally produced EV in line with the Ministry of Public Enterprise Sector’s plan to produce 100,000 EVs.

According to an official close to the file, El-Nasr Automotive Manufacturing Company and Engineering Automotive Manufacturing Company, affiliated to the Ministry of Public Enterprise Sector, would have a major role in the strategy.

The development plan of El-Nasr Automotive stipulated contracting with a foreign partner to produce 50,000 cars annually after five years then increasing production to 20,000 on a complete knock-down kit scheme at the end of the third year while increasing the proportion of local components.

The source added a partnership agreement has been concluded with a major local partner to produce less 1,000cc cars, bringing the total production to 70,000 cars in three years.

Chinese Dongfang was contracted by the Ministry of Public Enterprise Sector to produce 25,000 EVs, according to the ministry’s plan to develop El-Nasr Company.

Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter