Is Egypt about to hit the gas on EVs?
“If we missed out on conventional car manufacturing (..) let’s join the world in what it is working on now," stated the Egyptian president during his meeting with executives from leading international industrial companies on November 26, 2024.
With these words, the president introduced the country’s ambitions for a promising new industry—electric vehicles/EVs.
The dream of manufacturing an Egyptian car has captivated officials since the 1960s. However, it eventually dwindled into a modest assembly industry. With the global rise of EVs, the vision has regained momentum, reigniting hopes among government leaders to make up for past shortcomings.
While the news cycle is flooded with upbeat statements about the imminent rollout of Egypt’s first locally produced electric car, key questions remain unanswered. When will the car actually be available? How much of it will be locally manufactured? And can it win over drivers used to conventional cars?
Flashy promises
Egypt's first foray into EV manufacturing began in 2020 under former Minister of Public Business Sector Hisham Tawfik. The plan was for state-owned El Nasr Automotive to partner with China's Dongfeng to build the 'Nasr E70.'
However, negotiations faltered in late 2021. El Nasr struggled to secure a lower price for imported components, failing to offer a competitive price and ultimately failing to reach a deal with its Chinese partner.
Undeterred, officials pressed ahead. In 2023, the Academy of Scientific Research and Technology/ASRT, operating under the Ministry of Higher Education, sought to back local firms in striking deals with international EV specialists. Two Egyptian companies, MATGR and EgyptSat Auto, received backing, but neither has yet produced a passenger EV.
Beyond government initiatives, 2024 witnessed a flurry of new foreign-local joint venture announcements: Alkan Auto, a subsidiary of Egypt’s Global Automotive Group with China's BAIC; El Sewedy–Ezz El Arab alliance with Malaysia’s Proton; and GB Corp (formerly Ghabbour Auto) with China's FAW. Yet, none of these collaborations materialized into a commercial product.
Additionally, during the much-publicized relaunch of El Nasr Automotive after a 15-year hiatus, officials announced the creation of a new joint venture for manufacturing EV batteries and electric minibuses, in cooperation with Emirati and Singaporean-Taiwanese firms.
Localization or just assembly?
These ventures aim to achieve over 60% local manufacturing, which is very ambitious compared to the current local assembly levels for conventional cars.
“We have the potential to produce EVs with at least 70% local content," says Raafat Masrouga, former head of the Engineering Automotive Manufacturing Company.
Speaking to Al Manassa, Masrouga asserted the stark difference in the manufacturing of Evs versus traditional cars, as their " engines contain over 7,000 parts that are difficult to manufacture locally."
According to Ahmed Zein, Head of the Clean Energy Vehicles Committee at the Automotive Division, Chamber of Commerce, the key to increasing local content in Egypt’s electric vehicle production lies in domestic battery manufacturing.
“The decisive factor in raising the local component percentage is expanding battery production locally,” he tells Al Manassa.
Other than El Nasr's undisclosed plan to produce batteries, a company named Shift EV launched in 2021 and now operates a battery plant with a 500-megawatt-hour annual capacity.
Media reports also suggest that the Arab Organization for Industrialization has begun building a facility for manufacturing and assembling lithium batteries. However, its capabilities remain limited, as it focuses on batteries for e-bikes, scooters, and golf carts.
When will an Egyptian EV hit the road?
Based on products currently listed on MATGR's website, the company's current production is focused on electric scooters, golf carts, and low-speed vehicles for city use—not passenger EVs.
Another key player, EgyptSat Auto, is also showcasing electric golf carts on its website. Despite having received a 'golden license' in 2023 to build a wide-ranging EV plant, the company website says that a full-speed EV will be ready by 2025.
“The design research is complete, and we will finish installing the production line in Q1 2025,” the company's Chairman Mohamed Elghamry tells Al Manassa.
"Production is slated to begin in Q2 next year," he adds.
Elghamry also confirmed the company is currently in talks with a German partner for foreign investment. The aim is to produce up to 5,000 vehicles per month. Initially, battery cells will be imported from China, but full domestic battery manufacturing is targeted within 18 months of production.
As for the other ventures, only GB Corp hinted at a production timeline, saying its rollout is expected in 2025.
Charging challenges
Currently, EVs make up a minuscule 0.1% of Egypt's car market, with only around 8,500 licensed units out of more than 5 million private vehicles.
Price remains a major barrier. "EVs exceeding 100km/h currently sell between EGP 1 and 1.5 million [around $19,776 to $29,666], which are technically still considered in the 'economic' bracket," car dealer Omar Salman told Al Manassa.
That helps explain the media buzz around EgyptSat Auto’s earlier announcement that its low-speed urban EV would retail for EGP 120,000 ($2,373).
When asked about pricing for the new models, Elghamry said it's too early to commit due to volatile production costs amid rising inflation.
While affordability is a major hurdle, Egypt’s electric vehicle ambitions face an equally pressing challenge: the country’s underdeveloped charging infrastructure and limited maintenance support.
As of late 2024, only five companies have obtained official licenses from Egypt’s Electric Utility & Consumer Protection Regulatory Agency and the Consumer Protection Agency to operate charging stations.
The total number of functional charging points remains modest—roughly 300 nationwide. In September 2023, two companies lost their permits for failing to meet installation deadlines.
Charging companies, in turn, blame low government-set electricity rates, fixed in February 2022 despite ongoing currency depreciation, for limiting expansion.
"Demand has doubled over the past year, reflecting a growing shift away from fossil fuels," Zein tells Al Manassa. “But the infrastructure simply isn’t keeping up — especially when it comes to the distribution of charging stations," he adds.
To address the gap, the Head of the Industry Committee at the Engineers Syndicate Gamal Askar recommends a nationwide charging station rollout, including a mobile app to help drivers locate stations.
One such initiative is already underway: a pilot program installing EV chargers at existing petrol stations. However, the rollout remains limited in scope.
According to car dealer Omar Salman, people are warming up to EVs, "but the biggest obstacle remains the lack of charging stations."
"Many roads and governorates still have no access to EV chargers, which limits widespread adoption. Still, we’re seeing a strong push to grow the market"
The future of EVs
Despite long-standing challenges in Egypt’s automotive sector and a lack of significant breakthroughs in local manufacturing, some industry figures believe the country has the potential to become an attractive destination for global EV producers—particularly Chinese firms looking to expand their global footprint.
Zein argues that Egypt offers a unique combination of strategic location, low-cost skilled labor, and access to export markets in Africa and the Middle East.
According to him, these factors make Egypt a strong candidate for hosting foreign EV manufacturing plants, especially for companies seeking proximity to both Europe and Asia.
Similarly, Gamal Askar expresses optimism about the future of EVs in Egypt, especially with the growing global pressure to reduce pollution and embrace green technologies.
A version of this article first appeared in Arabic on December 10, 2024.