It was a busy day for automotive news, which comes in line with our localization push and state efforts to localize the automotive industry.

THREE FACTORIES FOR AUTO-FEEDING INDUSTRIES-

A USD 1.4 bn investment in auto-feeding factories: The government plans to set up three factories for the production of car components in the Sokhna Industrial Zone at a cost of around USD 1.4 bn, Al Mal reports citing a government document. The move aims to help localize the automotive industry by increasing the availability of raw materials necessary for automotive production.

The details: The first factory will manufacture interior parts for vehicles and paint components, while the second will specialize in lithium and nickel-cadmium batteries. The third will produce steel structures, panels, and EV batteries.

Remember: General Motors, Nissan, and GB Corp have registered to participate in the upcoming Egyptian Automotive Industry Development Program (AIDP), which will offer incentives to auto players with the aim of localizing the industry. Companies will need to produce no less than an annual 5k units per model and 10k units per factory to be eligible for the incentive package.

More locally-produced cars? Five automotive players are looking to either expand their local production or start assembling their units locally, a government official told us earlier this month, naming GB Corp, Nissan, Chevrolet, Global Auto, and Kasrawy Group.

SHIFT EV TO MAKE BATTERIES FOR RAYA’S EVS-

Locally-produced EV batteries: Local EV startup Shift EV will supply Raya Holding’s automotive unit Raya Auto with locally-produced batteries for Raya’s light EVs, under a newly-announced partnership, according to a statement (pdf). The move “marks the first regional alliance capable of deep localization of electric mobility technology as Egypt moves towards expanding its industrial base.”

More to come from the new partnership: The two companies aim to expand their partnership across a range of products in the coming years. “Partnering with Shift EV…enables us to upgrade our premium products with lithium-ion batteries — proudly made in Egypt,” Raya Auto CEO Mohamed El Naggar said.

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