The Egyptian government seeks to localise the electric car industry to keep pace with the current global approach to reduce pollution and protect environment using zero-emission vehicles.
Egypt’s Public Enterprise Sector Minister Hisham Tawfik witnessed last month the signing of a Memorandum of Understanding between the state-run El Nasr Automotive and China’s Dongfeng Motor, for the production of electric vehicles (EV) in Egypt at an annual capacity of 25,000 units.
Managing Director of El Nasr Automotive Hani El Kholy said the company can provide 25% of the input requirements from the local market. He added that the company would bring the local component to 80% when EV battery manufacturing is localised.
He noted that the company is the first to produce EV in Egypt, urging the government to provide incentives to support this industry, including financial facilities and electricity subsidies. The state should also launch marketing campaigns to promote EVs among citizens, and provide appealing payment plans and after-sale services, he added.
Hussein Mostafa, an automotive market expert, said that Egypt has a good opportunity to produce EV because it depends on modern technology. He added that EV production lines do not differ from traditional ones for petrol cars.
He noted that the local component can reach 45% of the electric cars.
Mostafa said there are many incentives that the state must provide to the EV industry, such as customs and tax exemption, and offering cars at competitive prices.
He pointed out the importance of the proliferation of EV charging stations nationwide, so that the consumer could drive his EV everywhere.
Mostafa also called for launching awareness campaigns of the importance of EV to increase public acceptance of the EV culture.
Moreover, Ayman Mohamed, Director of Business Development at Electrified Company, which works in the field of spreading the culture of electric cars in Egypt, said the new agreement has many benefits. These include encouraging investors to start working on electric cars in Egypt.
He added that the government must provide the needed infrastructure that serves this type of cars.
Mohamed noted that the government can cooperate with private sector companies, since these companies have already conducted market studies on EV, which saves the government time, effort, and money to study the requirements for this new industry.
He pointed out that the government must determine the EV charging standards, whether European or American, in addition to the need to conduct quality tests on all types of chargers before using them to ensure that they work efficiently in different weather conditions, in order to preserve the safety of users.
Mohamed added that taxis and public transportation can use electric cars, as they travel long distances daily, taking into consideration that operating and maintenance expenses should move the service fees.
He stressed that generalising electric cars in different transportation services will benefit everyone due to its low price on the one hand, and saving traditional fuel on the other hand, especially that these cars contribute to reducing pollution rates.