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Egypt allocates EGP 1.5 billion to boost the localization of its automotive industry

Egypt allocates EGP 1.5 billion in its 2024/2025 state budget to support the automotive industry.

This initiative supports Egypt’s National Strategy for the Localization of the Automotive Industry, which was launched in 2022 as well as the Automotive Industry Development Program (AIDP). As of mid-2025, seven companies have joined the localization strategy, with three submitting invoices.

Egypt is also making progress in electric mobility, launching its first electric minibus production project, developing a battery production line (targeting 600 batteries annually by 2026), and investing EGP 300 million in the Egypt Sat Auto project to produce electric vehicles, buses, scooters, and charging stations.

Traditional automotive manufacturing is expanding through key projects such as:

  • Geely’s plant, with a production capacity of 10,000 vehicles annually and 45% local content
  • Al Nasr Automotive, producing 300 buses annually with over 50% local content
  • Egyptian German Automotive, manufacturing 1,200 Mercedes and 3,000 Exeed vehicles each year.

Source: Egypt allocates EGP 1.5bn to accelerate automotive industry in FY2025 – Dailynewsegypt