Egypt breaks ground on $150m eco-friendly car plant
Egypt’s Minister of Industry and Transport Kamel El-Wazir on Monday laid the foundation stone for the new MAC vehicle manufacturing plant, owned by Mansour Automotive Group, in the 6th of October Industrial City.
The plant, built on a 55,000-square-metre site with investments exceeding $150 million, will produce 50,000 environmentally friendly vehicles annually in its first phase, including hybrid and electric models. The project is expected to create between 6,000 and 10,000 direct and indirect jobs, according to a statement from the ministry of industry.
El-Wazir said the project represents a “new milestone” in Egypt’s national automotive strategy, which aims to establish a fully integrated auto industry—from component manufacturing and assembly to local production of electric and hybrid vehicles—aligning with global shifts toward green and sustainable transport.
He added that the ministry plans to turn the new MAC plant into the nucleus of a larger automotive manufacturing city in this strategic location, which connects major industrial and logistical routes linking October City, the regional Ring Road, and the Fayoum and Wahat highways.
“This factory embodies a model of partnership between the state and the private sector,” El-Wazir said at the groundbreaking ceremony. “The government provides the legal framework, investment incentives, and industrial zones, while the private sector contributes its capital and expertise to expand production, deepen local manufacturing, and create jobs.”
Once operational, the MAC plant’s annual capacity is expected to double to 100,000 vehicles within five years, positioning it as one of the largest automotive facilities in North Africa.
The project comes under the National Automotive Industry Development Programme, launched to increase Egypt’s car production capacity to 100,000 vehicles annually per company by 2032, including 7,000 electric vehicles, while raising local content to over 35 per cent and local value-added to 60 per cent.
The minister emphasised that Egypt is working to attract global automakers and component manufacturers, supported by legislative reforms such as the creation of the Supreme Council for the Automotive Industry and the Environmentally Friendly Vehicle Fund, which provide incentives for local and foreign investors.
Mansour Group, one of Egypt’s largest automotive distributors, operates in partnership with international brands including General Motors and Peugeot.
Attribution: Amwal Al Ghad English