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The auto industry is set to see a raft of new investments, with Egyptian International Motors and Stellantis pledging major investments in the local auto sector — all as the government continues its bid to localize the industry and become an automotive export hub.
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#1- Egyptian International Motors is investing big in the auto sector: Egyptian International Motors — the sole agent of Kia Motors and Renault in Egypt — plans to invest some USD 100 mn in its vehicle manufacturing business — assembling, marketing, and exporting vehicles — as part of a broader push to localize Egypt’s auto industry and position the country as a vehicle export hub, according to a cabinet statement. The company aims to export some 105k cars worth some USD 1.3 bn over the next five years.
Remember: Egyptian International Motors in 2022 signed an MoU with the Suez Canal Economic Zone, the Sovereign Fund of Egypt, and the East Port Said Development Company to explore building a factory with a production capacity of 75k cars per year.
#2- Stellantis to invest EUR 116 mn localizing the auto industry: Automotive player Stellantis plans to invest EUR 116 mn in the local manufacture of four vehicle models expected to hit the streets over the course of three years, according to a statement. The company is also planning on working with a local company to produce three-wheeled electric vehicles.
ICYMI: Stellantis last month said that it would restart assembling the Jeep Grand Cherokee L locally at the factory of the Arab Organization for Industrialization’s Arab American Vehicles Company, with the company also reportedly considering assembling Citroen’s C4X model in Egypt for possible export.
Both companies are pledging to increase their local component ratio: Egyptian International Motors is planning to increase its local component ratio to 58% in the first year of its new facility’s operation, up from 48% currently. Stellantis, meanwhile, aims to increase its local component ratio to 45% next year and to 52% by 2028.
