Al Mansour Automotive is looking to set up a USD 35 mn car assembly and spare parts plant, according to a cabinet statement on Thursday. This is in line with the Madbouly government’s automotive strategy which aims to develop the local car industry in order for Egypt to become a regional manufacturing hub. Information about the timeline for the potential investment wasn’t disclosed.

Is Mansour bringing anyone along for the ride? The statement following the meeting between Prime Minister Moustafa Madbouly and company chairman Mohamed Mansour and CEO Ankush Arora did not disclose whether the company would be partnering with foreign firms on the project.

Assembling EVs? While information about whether the potential factory will be assembling electric vehicles (EVs) or gasoline-powered cars hasn’t been made public, last year the company announced it was close to finishing feasibility studies to start assembling EVs in Egypt. In November,Mohamed Mansour said that he intended to produce 15k EVs over the next three years and the company signed an MoU with long-term partner General Motors in late 2021 to explore the possibility of partnering up to produce EVs locally.

Plans for a 50% locally produced EV: The company also presented a feasibility study to Madbouly for the production of a new electric vehicle made initially with 50% local components, the statement reads. The company added that the locally made EV would progressively be made with more locally produced parts over several years, create thousands of jobs, and produce EVs at more affordable prices.

Remember: MPs approved legislation in July that will see the establishment of a new regulatory body to set policy for the local automotive industry (including EV assembly). The legislation also set up a new fund to offer incentives to companies in the business of assembling environmentally-friendly cars.

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