{"id":678529,"date":"2025-12-21T00:00:00","date_gmt":"2025-12-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=678529"},"modified":"2025-12-26T12:39:46","modified_gmt":"2025-12-26T12:39:46","slug":"egypts-ev-future-is-here-it-just-has-a-backup-engine","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/12\/21\/egypts-ev-future-is-here-it-just-has-a-backup-engine\/","title":{"rendered":"Egypt's EV future is here \u2014 it just has a backup engine"},"content":{"rendered":"

Industry insiders are betting that 2026 will be the year of range-extended electric vehicles <\/strong>(REEVs) in Egypt.<\/strong> One of them, Abu Ghaly Motors Vice President Tamer Kotb, goes so far as to say that REEVs could account for as much as 50-60% of new car sales in Egypt in the coming year.<\/p>\n

\u201cThe real growth story won\u2019t be pure electric cars, but new-energy vehicles (NEVs)<\/strong>, including plug-in hybrids and range-extended EVs,\u201d Kotb notes. \u201cI see strong inflows. Manufacturers and agents are heavily focused on NEVs as the price of petrol increases [thanks to government subsidy cuts] and thanks to the lower operating and maintenance costs of EVs,\u201d he adds. <\/p>\n

Everyone and their brother is bringing \u201cnew energy\u201d models to the market: <\/strong>In just the past week, Karim Sami Saad\u2019s Natco<\/strong> introduced two extended-range models from Exeed (Chery\u2019s luxury brand), while GB Auto<\/strong> launched three extended-range models from premium Chinese brand Li Auto. GB had new-energy models in each of the three brands it rolled out in the last year, according to GB Auto board member Mansour Kabbani: Li Auto, South Korean luxury brand Genesis, and Changan\u2019s Deepal. <\/p>\n

And they just keep coming: <\/strong>Just yesterday, El Tarek Automotive <\/strong>\u2014 one of the nation\u2019s largest multi-brand distributors \u2014 reintroduced the Chinese brand DFSK, featuring a lineup of vehicles with REEV technology. <\/p>\n

A number of global brands are looking at Egypt as a potential manufacturing hub for <\/strong>REEVs<\/strong>, says Ahmed Fikry Abdel Wahab, vice president of the African Association of Automobile Manufacturers (AAAM). Why? Range-extended EVs are particularly well-suited to Egypt and much of Africa, he explains, noting, \u201ccharging infrastructure will take decades to roll out\u201d across the continent. (Abdel Wahab is also managing director of Natco\u2019s Egyptian German Automotive Company.)<\/p>\n

Uh, Enterprise? What\u2019s a REEV? <\/p>\n

Demystifying industry-speak: <\/strong>A REEV is essentially an electric car with a small internal combustion engine that works only as a generator, switching on to produce electricity when the battery runs low. The wheels are always driven by an electric motor. On a plug-in hybrid electric vehicle (PHEV), both the engine and the electric motor can directly drive the wheels via parallel drivetrains. <\/p>\n

In practice, REEVs deliver a smooth, EV-like driving experience<\/strong> while reducing mechanical complexity and range anxiety: Even the tank-like Rox01 claims a range of more than 1.1k km. <\/p>\n

When it comes to batteries, REEVs sit in the middle: <\/strong>Much larger than PHEV packs, but smaller than those in pure EVs, which rely on large batteries to cover the full range without an internal-combustion backup.<\/p>\n

!_Subhed_! A paradigm shift? Not yet.<\/strong><\/p>\n

EV sales grew significantly in 2025<\/strong>, but they still represent no more than 5% of total new-car sales, according to Kotb. Egyptian buyers have licensed about 18.5k passenger EVs since 2021 \u2014 1,267 of them in the past month alone, according to data from the Compulsory Motor Ins. Pool. <\/p>\n

Kabbani, who drives a full EV, doesn\u2019t see EVs taking over the local market in the <\/strong>near-to-medium term. <\/strong>He points to two drawbacks: A still-embryonic national network of charging stations \u2014 and a little thing called \u201crange anxiety.\u201d<\/p>\n

Range anxiety \u201cis a very big overhang,\u201d<\/strong> he says. \u201cForget going to Gouna. You\u2019ll stop in Zafarana \u2014 either the station is working or it's not. And if it is working, maybe a car is already plugged in, so what are you going to do?\u201d <\/p>\n

The potential game changer? <\/p>\n

BYD is coming: <\/strong>Perhaps the most anticipated event in the local automotive market is the introduction in early 2026 of global EV leader BYD\u2019s electric and hybrid vehicles through Mansour Group\u2019s Maneast. Even without an official distributor in place, parallel-market imports of BYD EVs currently account for roughly one-third of monthly EV sales.<\/p>\n

\n

Adaptation<\/p>\n

Hybrid vehicles are going to re-shape the market for buyers and sellers alike<\/strong>, whether we\u2019re talking PHEVs, EVs, or REEVs. <\/p>\n

\u201cThe elephant in the room is that the resale value of electric cars is very poor worldwide.<\/strong> This is a phenomenon,\u201d says our friend Maged El Tawil, a car dealer better known for Cars by Maged<\/a>, the nation\u2019s number-one automotive YouTube channel with more than 620k subscribers. \u201cYou\u2019re talking about something in their infancy compared to internal combustion, which has been around for more than 120 years. Today you can change your internal combustion engine for 10% of your car\u2019s price, but if you want to change your EV battery, you\u2019ll pay 40 or 50% of the car\u2019s price,\u201d Maged explains.<\/p>\n

For distributors, the economics of selling pure EVs is also a significant change from <\/strong>selling ICE vehicles: <\/strong>\u201cIt\u2019s almost like being a mobile phone distributor. Mobile phones do not require maintenance,\u201d Maged says. That\u2019s a paradigm shift for dealers selling cars with internal-combustion engines. Aftersales parts and service revenues<\/strong> (think oil changes and transmission work) contribute maybe 15% of a distributor\u2019s revenues \u2014 but can account for up to 60% of its gross profit.<\/strong><\/p>\n

EVs can require as much as 40% less maintenance than a petrol-fueled car<\/strong>, leaving distributors trying to make up their margins on tires, software upgrades, and post-collision bodywork (a good revenue stream in Egypt). Kabbani notes that EVs aren\u2019t maintenance-free, though, pointing to the need to replace brake pads, tires, and other components. <\/p>\n

\n

Our take<\/p>\n

Hybrid vehicles including REEVs and PHEVs offer the best of both worlds<\/strong> \u2014 the range of a conventional vehicle combined with cutting-edge Chinese tech and a taste of what our full-EV future might look like. And with perhaps a decade before Egypt is notably far down the road to full-EV future, they offer better-than-EV aftersales margins to local brand owners used to the fat margins on ICE models. <\/p>\n

Think of them as a \u201cwalk-before-you-run\u201d bridge technology: <\/strong>mostly electric, range-flexible, and better suited to our market, where charging infrastructure will be built-out over a decade or more.<\/p>\n

What remains unclear: <\/strong>How should REEVs be treated in the licensing process, given the variation in the capacity and function of their gasoline engines? For now, REEVs and PHEVs are being temporarily licensed as EVs, pending the introduction of a formal hybrid classification within the car licensing system next year, while mild-hybrid vehicles continue to be treated as conventional IC vehicles. <\/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","protected":false},"excerpt":{"rendered":"

The auto market is back \u2014 but it's not the market we know as distributors pivot to \u201cnew energy\u201d models<\/p>\n","protected":false},"author":1,"featured_media":678530,"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":[7335],"tags":[144,72,356,241,12389],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-678529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-automotive","tag-enterpriseam","tag-evs","tag-gb-auto","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"d21a80a2-d51c-403f-a8ee-5330c212127a","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/5\/966.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt's EV future is here \u2014 it just has a backup engine","related_issue":[678524],"teaser":"The auto market is back \u2014 but it's not the market we know as distributors pivot to \u201cnew energy\u201d models"},"yoast_head":"\nEgypt's EV future is here \u2014 it just has a backup engine - 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