Another step toward the Automotive Directive? Trade Minister Tarek Kabil issued yesterday a decree forming a committee in charge of implementing higher local content requirements for domestic assemblers and manufacturers. The committee will draft the executive regulations to the ministry’s directive from last month that requires 46% of the components of domestically-assembled cars to be sourced locally. It will also oversee the creation of a comprehensive database of automotive manufacturers and component producers in Egypt. Assemblers have welcomed the changes to local contact rules as a “significant step” toward the Automotive Directive, which would offer assemblers incentives to move up the value chain into manufacturing. Members of the committee include representatives from the Industrial Development Authority, the auto components and engineering industries divisions of the Federation of Egyptian Industries, and the Trade and Industry Ministry.

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