Could we be seeing Egypt’s first locally produced EV soon? The electric vehicle industry in Egypt could finally be starting to gain some much-needed momentum, as our first locally manufactured EVs — a low-range, low-speed commuter for urban areas — could roll off production lines soon. With the government working on providing incentives to localize the industry as part of its automotive strategy, multiple local companies have announced plans to start locally producing EVs in the foreseeable future.

Enterprise spoke with industry experts to find out how Egypt is faring on the EV front, how close we are to locally manufacturing EVs, and how ready the country is for a nationwide switch to green mobility.

Where do we stand? The AAST said it was on the verge of producing affordable, locally-assembled electric cars last February, with a possible launch date by August of this year. The academy’s EV project seems to be inching closer and closer to the finish line. “We’re already done with the design of the vehicle, and there’s already a functional prototype. Production should start in early 2024,” head of the The Arab Academy for Science, Technology and Maritime Transport (AAST)’s EV project Mohamed Elghamry told us. “Output will start at 1k vehicles a month by early next year, then we hope to reach an output of 5k vehicles within seven months of launching,” he said.

Two vehicles at an incredible price point: The AAST plans to release two vehicles — one with a top-speed of 60km/h and a battery capacity of 100 km per charge and another with a top speed of 90 km/h and a battery capacity of 200 km per charge. The EVs will be priced at EGP 120k and 180k respectively, Elghamry said. “The entire body of the vehicle will be manufactured locally, as well as all the internal components — the seats, the glass, etc,” he said. The vehicles’ components are set to be 100% locally manufactured within a year, pending a couple of rounds of testing for the remaining non-local components such as the engine and battery, Elghamry explained.

Think golf carts or “smart cars,” not luxury cars: The vehicles are specifically made for shorter commutes inside the city, which Elghamry believes is what most Egyptians will need. “We’ve created a car that is made for driving inside the city. 80% of private cars are used primarily within the city, where the speed limit is mostly between 60-80 km/h. You don’t really need a car with an expensive engine that moves much faster than the limit,” Elghamry said. “Other than the engine itself being relatively cheap, we can generally maintain low prices as we avoid import customs and longer supply chains, which is what causes auto prices to be expensive in the first place,” he added.

And on the road to a golden license: “The prime minister has agreed to give us a golden license, and we’re going through the process of acquiring it officially in the coming months,” Elghamry said.

But is local production the way to go? “I don’t think we have the know-how and the technology to locally produce a car from scratch,”Abou Ghaly Motors COO Tamer Kotb told us. “We still have to rely on international companies for the know-how on producing EV motors and batteries. The alternative is to attract international companies to produce EVs here, providing a trust-worthy option for the Egyptian consumer who continues to view EVS with an air of skepticism,” he said.

Throw the focus on local assembly instead: Abou Ghaly Motors is set to start locally assembling Geely EVs at some point this year, and Kotb believes the focus should be on turning Egypt into an EV export hub for neighboring markets. “We should be focused on attracting international auto companies to invest here, and produce primarily to export,” he said, “By prioritizing local assembly, we contribute to fixing the FX crisis, we create jobs, and we still provide Egyptian consumers with a product that will earn their trust.”

The EV market is maturing, regardless of who builds them: When asked about the expected market demand, Elghamry said with the prices and technology offered, there will be plenty of consumers ready to adopt AAST’s product. “Charging stations won’t be an issue, as the infrastructure is already available and expanding, and our cars will come with their own chargers,” he added.

The infrastructure to support EVs is taking shape: Renewable energy player Infinity is planning to increase the number of its charging stations to 300 and charging spots to 1k by 2024, as part of a larger plan with the government to set up 6k vehicle charging spots across the country.

And other players are venturing into the space: State-owned El Nasr Automotive had also hoped to put locally manufactured vehicles into the market by 2023, but is still seeking new international partners after talks with Chinese firm Dongfeng fell through. Most recently, El Nasr held talks with Hinduja Group subsidiary Ashok Leyland in May over a potential partnership.

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