Another step towards our auto localization push: Automotive player Kasrawy Group and Chinese automaker Jetour will set up a USD 123 mn factory to locally assemble the Jetour T1 and T2 models, under an agreement inked yesterday, according to a cabinet statement.

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The details: The factory — to be set up in the 6th of October Industrial Zone — will include three production lines for welding, painting, and final assembly. Most of the output will serve the local marker, with a small portion earmarked for export. The factory will be set up over three phases and will create around 1.5k jobs.

The local component breakdown: Initially, the vehicles will have a local component ratio of 45%, to increase to 55% and 60% during the second and third phases, respectively, according to a separate statement.

Wasting no time: Jetour has already started contracting production lines for the project.

And there’s more: The Chinese carmaker is working to establish a local training center to support knowledge transfer and workforce development in auto manufacturing.

We’ve known about this for some time now after local media reported in August that Kasrawy was looking to begin locally assembling Jetour and Jac car models.

AND- The locally-assembled X70 Plus Jetour model hit the streets today — the Kasrawy Group has the capacity to assemble 5k units on an annual basis.

REMEMBER- The Madbouly government has been working to localize the auto industry, introducing the Egyptian Automotive Industry Development Program in 2022, which offers incentives to auto players with the aim of localizing the industry and its feeder industries in efforts to enhance the country’s existing assembly and manufacturing capabilities — and encouraging new investment to the sector.

ALSO- Additional incentives for EV manufacturers: To incentivize local EV manufacturing, the state will purchase a percentage of production for a five-year period, under directives from President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly said.

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