The Madbouly government is preparing three incentive programs to boost the local production of vehicles including trucks, light commercial vehicles, minibuses, and electric taxis, a government source told EnterpriseAM.

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There’s funding on the table: The government could allocate EGP 9.2 bn to support the new auto localization schemes this fiscal year, the source said.

Bus and truck makers could get the same perks as passenger car producers: Turck and bus makers are in talks with the government to receive the same incentives offered to passenger car manufacturers under the Automotive Industry Development Program (AIDP), Automotive Manufacturers Association head Khaled Saad told EnterpriseAM. He added that a separate program is in the works to attract more FDI into the sector and encourage importers to shift to local manufacturing.

ICYMI- 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. .

Curious about the Automotive Industry Development Program? Check out our coverage of the updated program, its new rules, and incentives here.

Local partnerships are already in the cards: MM Group for Industry and International Trade (MTI) is in negotiations with Indian truck and buses manufacturer Tata Motors to assemble one of its models in Egypt, Sales and Marketing Manager for Tata at MTI Group Akram El Sobky told Asharq Business.

SPEAKING OF AUTO LOCALIZATION- The government has commissioned Kandil Steel and Ashry Steel to prepare feasibility studies on localizing the production of steel sheet used in auto manufacturing, unnamed sources told Al Borsa. The move is part of a broader push to deepen local supply chains and support feeder industries. Both companies are eyeing the establishment of dedicated plants for the manufacturing of steel sheets to meet local demand and potentially export to neighboring countries with growing auto sectors. Yesterday, Industry Minister Kamel El Wazir met with iron manufacturers and carmakers to discuss efforts to localize the auto sheet metal industry.

IN OTHER AUTO NEWS- The natgas transition scheme is getting a second life: The Finance Ministry is looking to revive the vehicle replacement program — which aimed to swap out older cars for models running on natural gas or electricity — after it was shelved in 2022 amid supply disruptions triggered by the war in Ukraine.

REMEMBER- The Madbouly government plans to convert 220k cars to run on natural gas over the coming three years, starting with 50k units in the current fiscal year.

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