{"id":643198,"date":"2024-09-04T00:00:00","date_gmt":"2024-09-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/04\/egypt-to-lag-behind-north-african-peers-in-vehicle-production-over-next-decade-but-production-growth-in-2024-remains-strong\/"},"modified":"2024-09-04T00:00:00","modified_gmt":"2024-09-04T00:00:00","slug":"egypt-to-lag-behind-north-african-peers-in-vehicle-production-over-next-decade-but-production-growth-in-2024-remains-strong","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/04\/egypt-to-lag-behind-north-african-peers-in-vehicle-production-over-next-decade-but-production-growth-in-2024-remains-strong\/","title":{"rendered":"Egypt to lag behind North African peers in vehicle production over next decade, but production growth in 2024 remains strong"},"content":{"rendered":"

Egypt\u2019s auto production to grow, but at a slower pace than its neighbors:<\/strong> The country\u2019s vehicle production is expected to witness steady increases over the coming years, but will likely fall behind regional competitors, according to a recent BMI report<\/a>. <\/p>\n

The numbers for the year ahead:<\/strong> The report expects Egypt to produce 37k vehicles in 2024, putting the country second place in the region above Algeria with an expected 17.4k vehicles and way behind Morocco in first place with 614k vehicles \u2014 marking it as the largest auto producer in the whole of the continent.<\/p>\n

Long-term outlook shows modest growth:<\/strong> BMI sees Egypt's vehicle production growing at an average annual rate of 11.4% between 2024 and 2033, reaching just under 83.5k vehicles by the end of the forecasted period. <\/p>\n

The rationale:<\/strong> BMI attributed its \u201cstrong\u201d vehicle production output in 2024 to \u201canticipated FX stabilization period and the easing of import restrictions.\u201d Also, \u201cthe reduction in currency fluctuation will provide much-needed certainty for manufacturers, which will support a more stable business landscape in which to scale up production.\u201d<\/p>\n

Remember:<\/strong> The Madbouly government has been working to localize the auto industry, introducing the Egyptian Automotive Industry Development Program (AIDP)<\/a> in 2022, which will offer incentives to auto players with the aim of localizing the industry and its feeder industries, with the aim of enhancing the country\u2019s existing assembly and manufacturing capabilities \u2014 and of encouraging new investment to the sector.<\/p>\n

But Algeria and others look set to outpace us: <\/strong>While Egypt\u2019s forecast represents significant growth, it lags behind the more optimistic growth forecasts for other North African markets. Algeria is expected to see production grow an annual 36.5% over the period between 2025-2033 and have an annual output of 236.7k units by end of the period \u2014 over 180% more than what Egypt is expected to produce. According to this trajectory, Algeria is expected to nudge Egypt out of its place as North Africa\u2019s second largest auto producer by 2026. Morocco is expected to expand output 6.8% every year until 2033 and remain at the top of the leader board with an eventual annual output of 1.1 mn vehicles.<\/p>\n

SPEAKING OF-<\/strong> Chinese auto players eying Egypt:<\/strong> Representatives from 20 Chinese automotive companies are set to land in Egypt in the coming days to look into how they can sell their models in Egypt in the coming period, business development head at the Egyptian Auto Feeders Association Ehab Mohamed told A<\/a>l M<\/a>al<\/a>. The representatives will be meeting with a number of local car agents and importers to look into how they could enter the local market. <\/p>\n

Read more: <\/strong>We dove into the government\u2019s efforts to localize the auto industry in an Inside<\/a><\/a>Industry<\/a> published earlier this week.<\/p>\n","protected":false},"excerpt":{"rendered":"

BMI expects Egypt to produce 37k vehicles in 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It also raised its forecast for the following year\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":572702,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/06\/egypts-passenger-car-sales-to-shrink-by-over-8-this-year-bmi-research\/","url_meta":{"origin":643198,"position":5},"title":"Egypt\u2019s passenger car sales to shrink by over 8% this year -BMI Research","author":"enterpriseam admin","date":"6 July 2020","format":false,"excerpt":"Passenger car sales are forecast to shrink by over 8% this year after having been expected to grow by 9.2% prior to the coronavirus, Fitch Solutions\u2019 BMI research said in a report (paywall) on the market in Egypt picked up by the local press. The downward revision came as the\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/30.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/643198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=643198"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/643198\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/643182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/643199"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=643198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=643198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=643198"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=643198"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=643198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}