Egypt’s El Nasr Automotive and the privately held Al Safy Group have set up a joint venture — dubbed SN Automotive — to manufacture global car brands locally, according to a statement (pdf). Established with EGP 500 mn in capital at the beginning of this year, the company will assemble, distribute, and finance the production of a range of vehicles in a bid to meet local demand and export to neighboring countries in North Africa.

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Al Safy owns the lion’s share of the company: Al Safy holds a 76% stake in the venture, while El Nasr owns the remaining 24%. The JV had an initial investment of USD 40 mn, with further investments planned to expand operations.

Remember- El Nasr this week officially restarted operations after a 15-year hiatus, delivering its first batch of electric 49-passenger buses in partnership with China’s Yutong to Transport Ministry-affiliated companies.

The first three models will be launched next year: SN Automotive has already secured a contract with a major Chinese automaker and plans to launch three locally assembled models — one electric and two gasoline-powered — by mid-2025, with the company already having contracted automated welding lines for these models. The plants’ launch next year will also see SN Automotive announce a second partnership with another foreign automaker, according to the statement.

Mass transit vehicles are also in the works: The JV has secured an exclusive manufacturing license for Yutong buses and is working on the manufacture of light and heavy transport vehicles, collaborating with local component manufacturers to support production.

Who’s doing what? Al Safy is set to oversee the entire supply chain, from importing parts and securing local components to distributing cars, managing dealerships, and providing after-sales services. El Nasr will be responsible for manufacturing, while SN Automotive will carry out all commercial activities.

Deepening local industry: The partnership aims to increase the percentage of local components in manufactured cars from 49% to more than 60% — set to further efforts to deepen auto industry localization in the coming years.

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