Al Mansour Automotive secured the agency for electric and hybrid BYD models in cooperation with Al Futtaim Group, with plans to begin local manufacturing and exports to the Gulf and Africa, sources with knowledge of the matter told EnterpriseAM.

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As things stand: BYD has become a staple on Egyptian streets but never had an agent in the country, with its models entering the country through parallel imports and individual purchases. Al Mansour Auto is currently selecting the models it wants to bring to Egypt. The company will also offer after-sales services and updated pricing mechanisms, according to the sources.

New EV incentives are in the pipeline: The government is preparing to offer fresh incentives to localize the EV industry, a government source told EnterpriseAM. The Supreme Council for Automotive Industry is reviewing a package of tax, customs, and investment incentives for companies interested in establishing EV production in Egypt. Additional incentives are also under consideration for EVs with a local component ratio of over 60%, a government source has previously told us.

At the moment, a flat 2% customs duty is applied on all imported equipment. But EV manufacturers receive an exemption from stamp tax and registration fees for a five-year period. In addition to that, subsidies of EGP 50k are provided for the first 100 locally manufactured EVs.

The new package would link incentives to production volumes, local content ratios, and investment in localizing key components. Additional incentives could be offered to companies that establish manufacturing technologies to reach full domestic production within five years. The program would also include expedited customs clearance for imported components used in production.

REMEMBER– The revamped seven-year Automotive Industry Development Program kicked off in July with the goal of attracting more investments and deepening the localization of the sector. Under the program, makers of vehicles costing no more than EGP 1.25 mn for consumers can receive up to EGP 150k in incentives in the form of tax and customs deductions.

To qualify, companies assembling and manufacturing EVs will start out with a minimum annual production quota of 1k vehicles, which will be raised to 7k by the end of the program. EVs will also have a 10% local component ratio to meet, which will be reviewed annually.

Already bearing fruit? EV companies are expected to strengthen their presence in the local market in the near future amid talks with the government over new incentives, the sources said.

ICYMI- The government has recently raised EV charging tariffs to encourage the development of EV infrastructure and address profitability concerns of charging infrastructure firms.

The expansion of charging infrastructure is expected to support demand for EVs. Despite higher upfront costs, upcoming increases in fuel prices could make EVs more cost-efficient than traditional vehicles, according to the sources.

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