Egypt’s PM discusses vehicle localisation plans with Chinese Jetour
Egypt’s Prime Minister Moustafa Madbouly met with the Chinese automaker Jetour Head Dai Lihong to discuss the company’s plans to localise the production of several vehicle models and trims.
Madbouly affirmed Egypt’s strong interest in strengthening its relations with China and boosting bilateral cooperation across multiple sectors, particularly in the automotive industry, as per a Cabinet statement.
The automotive industry is a key priority in Egypt’s national industrial development strategy, with a specific law supporting the localisation of the industry, particularly electric vehicles, given China’s global leadership in EV manufacturing.
Lihong presented Jetour’s plan to localise the production of several car models in the Egyptian market, including the T1 and T2 models, which will be assembled at a new facility in 6th of October City.
He explained that the total investment in the new assembly plant is $123 million, over three phases. The local component ratio will reach 45 per cent in the first phase, 55 per cent in the second phase, and over 60 per cent in the third.
Madbouly emphasised the importance of accelerating the growth of the local component ratio in Jetour’s new and future models, stating that incentives for local car manufacturing are tied to the level of local component.
He also noted that President Abdel Fattah El Sisi is focused on developing the electric vehicle industry in Egypt. He has ensured that investors setting up manufacturing plants will have guaranteed government purchases for five years.
Attribution: Amwal Al Ghad English
Subediting: M. S. Salama
AfDB 2023