{"id":664890,"date":"2025-05-08T00:00:00","date_gmt":"2025-05-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/08\/the-automotive-industry-development-program-is-getting-a-facelift\/"},"modified":"2025-05-08T00:00:00","modified_gmt":"2025-05-08T00:00:00","slug":"the-automotive-industry-development-program-is-getting-a-facelift","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/08\/the-automotive-industry-development-program-is-getting-a-facelift\/","title":{"rendered":"The Automotive Industry Development Program is getting a facelift"},"content":{"rendered":"

The governm<\/strong>e<\/strong>nt is putting together new incentive criteria and additional <\/strong>benefits for automakers<\/strong> participating in the Automotive Industry Development Program in a bid to boost local component rates to 65% from 45%, a government source told EnterpriseAM.<\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

The lay of the land:<\/strong> The revised incentive framework introduces a new methodology for calculating local component requirements and value-added metrics, according to a statement<\/a> by the Industry Ministry. The framework will be presented to Prime Minister Moustafa Madbouly before being submitted to President Abdel Fattah El Sisi for final approval.<\/p>\n

The revised program includes new customs concessions<\/strong> to speed up the import of inputs for local manufacturers and sets minimum vehicle production targets, our source said. Program funds will be distributed to manufacturers through the central clearing system within three months following production, they added.<\/p>\n

ICYMI- <\/strong>The Finance Ministry is considering exempting imported auto parts<\/a> used in manufacturing from the 3% state development fee to, instead, collect the fees upon commercial sales and during license renewal. The move comes amid other initiatives to help localize the auto industry, including an expanded EGP 3 bn AIDP.<\/p>\n

The initiative to boost the localization of auto components aims in part to cater to <\/strong>international trade agreements<\/strong>, our source said, adding that insufficient local component rates were among the obstacles behind a trade dispute with Morocco earlier this year. <\/p>\n

REMEMBER-<\/strong> In February, Morocco held up some 150 containers<\/a> of Egyptian goods in Moroccan ports in an attempt to rebalance the two countries' trade relationship. The two countries have been working to strengthen trade relations in recent months, with Egypt\u2019s latest efforts focusing on a plan to ramp up imports<\/a> from our Arab neighbor to USD 600 mn.<\/p>\n","protected":false},"excerpt":{"rendered":"

The move comes as part of the government's efforts to localize the auto industry<\/p>\n","protected":false},"author":1,"featured_media":664891,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7339],"tags":[144,72,7196],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-664890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automotive","tag-automotive","tag-enterpriseam","tag-industry","wpautop","entry"],"acf":{"mongo_id":"a748f35c-83e5-485c-b6e9-ca6199ce6ddc","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/5\/590.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt\u2019s Automotive Industry Development Program is getting a facelift","related_issue":[664882],"teaser":"The move comes as part of the government's efforts to localize the auto industry","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/5\/.138e0824-c949-41dd-9bf1-7415060f9271.mp3"},"yoast_head":"\nThe Automotive Industry Development Program is getting a facelift - 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The program\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\/2022\/7\/381.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":581764,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/23\/stellantis-nissan-and-mansour-could-invest-usd-145-mn-in-local-assembly\/","url_meta":{"origin":664890,"position":2},"title":"Stellantis, Nissan and Mansour could invest USD 145 mn in local assembly","author":"enterpriseam admin","date":"23 February 2023","format":false,"excerpt":"Stellantis, Nissan and Al Mansour Automotive could invest a total of USD 145 mn in the nation\u2019s auto industry over the next three years under individual framework agreements signed with the government earlier this month, Prime Minister Moustafa Madbouly said yesterday. If all three agreements are executed, the companies would\u2026","rel":"","context":"In "Investment Watch"","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/car-manufacturing-1600px-1.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":577894,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/08\/stellantis-wants-to-build-50k-cars-a-year-here\/","url_meta":{"origin":664890,"position":3},"title":"Stellantis wants to build 50k cars a year here","author":"enterpriseam admin","date":"8 December 2022","format":false,"excerpt":"Automobile manufacturer Stellantis Egypt wants to locally produce 50k cars a year, Managing Director Hesham Hosny said at an industry conference this week (watch, runtime: 44:33). \u201cWe plan to have the Middle East and Africa produce 70% of its own automotive needs,\u201d he said. Stellantis is one of the largest\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/automotive\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/12\/157.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":591613,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/11\/is-egypts-auto-manufacturing-incentives-package-coming-out-of-hibernation-soon\/","url_meta":{"origin":664890,"position":4},"title":"Is Egypt\u2019s auto manufacturing incentives package coming out of hibernation soon?","author":"enterpriseam admin","date":"11 December 2019","format":false,"excerpt":"LEGISLATION WATCH- Is the auto manufacturing incentives package finally going to emerge from months of hibernation? Proposed amendments to the Customs Act that will provide customs discounts to car manufacturers in return for increasing their use of local components will be sent to the House of Representatives \u201csoon\u201d for review\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":599046,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/17\/egypt-to-provide-large-custom-discounts-to-power-its-domestic-car-industry\/","url_meta":{"origin":664890,"position":5},"title":"Egypt to provide large custom discounts to power its domestic car industry","author":"enterpriseam admin","date":"17 June 2019","format":false,"excerpt":"EXCLUSIVE- We\u2019re going to be discussing a new set of incentives for the automotive industry this fall. The finance and trade ministries are drafting new incentives to spur domestic manufacturing and assembly that will include large custom discounts on automotive components that peak at nearly 100%, two government sources told\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\/2022\/7\/381.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\/664890","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=664890"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/664890\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/664882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/664891"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=664890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=664890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=664890"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=664890"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=664890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}