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Egypt is accelerating plans to localize its automotive industry, targeting annual production of more than 100,000 vehicles within the next two to three years while seeking to increase the share of locally manufactured components.

Prime Minister Mostafa Madbouly outlined the target during the closing session of Egypt Forum 2026 as part of a broader review of the country’s industrial development plans.

From Vehicle Assembly to Deeper Manufacturing

The government wants local content in vehicle production to reach 60%, reflecting a broader effort to move beyond assembly and establish a deeper automotive manufacturing base.

Madbouly also pointed to plans to expand the assembly and manufacturing of electric vehicles in Egypt.

The government believes existing industrial capacity could support production exceeding 100,000 locally made vehicles, helped by the reopening of previously inactive factories and new cooperation with international manufacturers.

Egypt Seeks More Automotive Investment

Government policy is focused on attracting global automotive companies, increasing factory capacity and developing local component manufacturing.

The strategy is designed to reduce dependence on imported components while creating production volumes that can lower costs and improve the competitiveness of Egyptian-made vehicles.

Production and Local Content Incentives

The National Automotive Industry Development Program offers incentives based on production volumes, local added value and new investments.

Manufacturers can also receive an additional EGP 5,000 for each one-percentage-point increase in local industrial content above the 35% threshold, in line with the program’s announced requirements.

The government is also looking at mechanisms to support automotive and component exports and encourage further investment in supporting industries.

A Wider Industrial Localization Strategy

Expanding vehicle production forms part of Egypt’s wider push to deepen domestic manufacturing, attract foreign investment, transfer technology and increase exports.

Reaching the 100,000-vehicle target will depend on continued investment, higher local component production and further expansion of manufacturing capacity over the coming years.