EGP 1bn Boost to Automotive Industry: Kouchouk
Government Allocates Funds to Localize Automotive Industry
The Egyptian government has taken a significant step towards revamping the automotive industry by allocating EGP 1bn in its fiscal year (FY) 2024/25 budget to finance a strategy aimed at localising the automotive industry, according to Finance Minister Ahmed Kouchouk.
Increasing Car Manufacturing and Local Component Production
The plan seeks to attract investment partnerships in car manufacturing and increase local component production to over 45% this year. This move is expected to boost the country’s economy and create new job opportunities. Moreover, it will reduce Egypt’s reliance on imported vehicles, thus saving valuable foreign exchange.
Seven Companies Already on Board
Kouchouk announces that seven companies register for the automotive localisation programme. Meanwhile, the Customs Authority releases the first shipments of production inputs last August. Additionally, the authority automates tax and customs transactions for registered companies, streamlining processes. Furthermore, Egypt’s Finance Ministry establishes a specialised unit to facilitate procedures and address companies’ challenges. In this context, the government allocates EGP 1bn to support the programme, driving growth in the vehicle assembly sector. This investment enables the country to strengthen its capabilities in Car manufacturing.
Simplifying Processes for Registered Companies
The government actively works to increase annual vehicle output with greater domestic value addition. Meanwhile, it sets up an online platform to streamline customs clearance procedures. Consequently, the waiting period decreases from 30 days to just 24 hours. As a result, companies quickly receive production inputs, thereby boosting their production capacity. Furthermore, the government’s allocation of EGP 1bn stimulates the industry’s growth. Additionally, this support enables the country to strengthen its Car manufacturing capabilities.
Encouraging Car Companies to Register
“We are continuing to communicate with car companies to encourage them to register in the new system in order to achieve the state’s goals in increasing the local component,” said Kouchouk. He affirmed that the government is working with relevant ministries to provide support and facilitate local car production.
Incentives for Companies
Kouchouk actively links incentives to specific targets, ensuring accountability. Meanwhile, Nissan receives its first incentive worth EGP 120m, allocated to settle government debts. Consequently, the company’s financial burden decreases, and needed cash flow for operations increases. Furthermore, as of 2025, the government has disbursed EGP 500m in incentives to participating companies, stimulating growth. Additionally, the government’s allocation of EGP 1bn supports the automotive sector’s development. This investment enables the country to drive forward its Car manufacturing capabilities.
Government Support for Local Car Production
The government actively supports the automotive industry beyond financial incentives. Moreover, the Ministry of Trade and Industry establishes a technical academy, training workers to enhance skills. This training will significantly improve the quality of local component production and increase the competitiveness of Egyptian-made cars.
Furthermore, the Egyptian government allocates EGP 1bn to stimulate the industry, taking a significant step towards promoting local production growth and increasing manufacturing capacity. Consequently, the government’s support positions the industry for growth and development in the coming years. As Egypt’s economy continues to expand, the government’s efforts to localize the industry are expected to yield positive results thereafter.
Source: Daily News Egypt