Cairo: Minister of Industry Khaled Hashem announced efforts to attract major automotive manufacturers to Egypt, aiming to initiate actual production while capitalizing on incentives from the National Automotive Industry Development Program.

According to State Information Service Egypt, Minister Hashem stated that incentives and market quotas would predominantly benefit the first companies to engage in local manufacturing and meet the program's objectives, especially in boosting local content and value added. The announcement was made during a meeting with Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, to discuss Volkswagen's plans to expand car manufacturing in Egypt. The discussions included potential collaborations with the Egyptian German Automotive Company and strategies to utilize existing facilities to lower costs and expedite the launch of electric vehicle production in East Port Said.

The meeting further assessed local suppliers' capabilities to increase local content in Volkswagen's vehicles. The Minister highlighted ongoing discussions with several global automotive giants to expedite manufacturing in Egypt, targeting an annual production of 100,000 vehicles by 2030. This initiative also seeks to bolster feeder industries and localize supply chains.

Priority will be given to companies that promptly commit to the program's stipulations and initiate manufacturing decisions. Biene expressed Volkswagen's eagerness to expand within the Egyptian market, recognizing it as a key strategic market in Africa and the continent's second-largest automotive market.