China’s BAIC has partnered with Egypt’s Alkan Auto to develop an electric vehicle factory in Egypt, supported by the Egyptian government’s initiatives to enhance the local automotive industry. The factory is expected to commence production by the end of 2025, with initial output projected at 20,000 vehicles per year, increasing to 50,000 by the fifth year, and will create around 1,200 jobs.

In a significant move towards enhancing Egypt’s automotive industry, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel El-Wazir, oversaw the signing of a pivotal agreement between China’s BAIC and Egypt’s Alkan Auto, a subsidiary of the Egyptian International Motors, to establish an electric vehicle factory in Egypt. The signing took place in the presence of key industry figures, including Zhao Bingfei, Vice President of BAIC, and Khaled Nosseir, Chairperson of Alkan Auto, among other dignitaries from the Ministry of Industry. Minister El-Wazir highlighted that this initiative aligns with President Abdel Fattah Al-Sisi’s vision to transform Egypt into a regional industrial hub. This effort aims to localize the automotive industry and promote the active role of the private sector in manufacturing. The Minister assured that the Ministry would extend its full support to ensure the project transitions swiftly into the production phase. The Industrial Development Authority has made adequate industrial land available for this venture and is committed to expediting all necessary licensing procedures. The factory, occupying an area of 120,000 square meters, is projected to commence production by the end of 2025. Initially, it aims to produce 20,000 vehicles in its first year, gradually ramping up to 50,000 by the end of its fifth year. The project aspires to utilize 48% local raw materials, with an ambition to increase this to 58%, and will create approximately 1,200 jobs. Song Wei, President of BAIC, expressed the company’s dedication to solidifying its presence in the Egyptian market, which he regards as vital within the region. He confirmed that BAIC has been producing electric vehicles for several years and continues to invest in research and development to deliver quality vehicles in both domestic and international markets. Remarkably, the company recently debuted a new car model in Egypt, further establishing its commitment to the local economy.

This article discusses the strategic partnership between China’s BAIC and Egypt’s Alkan Auto to establish an electric vehicle manufacturing facility in Egypt. This development is part of Egypt’s broader strategy to enhance its automotive sector, attract foreign investment, and create local employment opportunities. The Egyptian government aims to localize the production of automobiles while simultaneously addressing the increasing demand for electric vehicles within the region. This venture is set against the backdrop of Egypt’s aspirations to become an industrial hub in the Middle East and Africa, leveraging its geographical position and potential market size.

The partnership between BAIC and Alkan Auto marks a significant stride for Egypt in establishing a robust electric vehicle manufacturing industry. With strong governmental support and a clear roadmap for production and job creation, this initiative not only aims to satisfy local market demands but also positions Egypt as a potential exporter of vehicles to neighboring regions. The commitment from BAIC to invest in the local economy further underscores the potential for growth within Egypt’s automotive sector, promoting technological advancements and industrial localization.

Original Source: www.dailynewsegypt.com

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