Ahmed Kamel – Egypt Daily News
In a significant step toward deepening domestic vehicle manufacturing and reducing reliance on imports, eight Egyptian automotive component manufacturers are preparing to invest EGP 5.6 billion by 2026. The move aligns with Egypt’s newly launched national strategy aimed at boosting local content in vehicle production and positioning the country as a regional automotive manufacturing hub.
This wave of investments comes just two months after the Egyptian government introduced revised policies under the National Program for Automotive Industry Development, which now mandates a minimum of 25% local value-added content for components to qualify as “locally manufactured.” Manufacturers exceeding a 35% local content threshold are eligible for additional incentives of EGP 5,000 per each 1% increase in local content per vehicle.
Scaling Up Auto Glass and Components
Leading the charge is Dr. Greiche Glass, a specialist in automotive glass manufacturing. The company is currently constructing a new facility with an investment of EGP 500 million, aiming to produce 5,000 full glass kits per day, including windshields, door windows, and rear glass by the first half of 2026. Hany El-Wakeel, Head of Sales and Business Development, revealed plans to also expand into mirror bases next year.
Meanwhile, Teryaq Group, known for its radiators and air conditioning parts, plans to boost its annual output by 50% to reach 150,000 units. The company is investing EGP 50 million in 2025 and aims to export 25,000 units by 2026. CEO Kerolos Teryaq believes demand from local car assemblers will increase significantly in late 2025, driven by improving sales across the domestic market.
EGP 3 Billion for New Component Lines
Another major contributor is the Egyptian Company for Automotive Component Industries, headed by Raafat El-Khenagary. The firm is allocating EGP 3 billion over three years to expand its portfolio, which will soon include wire harnesses, exhaust systems, axles, sheet metal parts, and plastic components. These expansions are expected to create hundreds of jobs and help localize key technologies.
El-Khenagary emphasized that the investments aim to significantly cut import dependence and respond to incentives outlined in Egypt’s updated auto industry roadmap.
Chinese Investments and Dongfeng Partnership
SN Automotive, a company that recently acquired the rights to assemble Dongfeng vehicles in Egypt, is planning to invest EGP 1 billion to localize parts production for three Dongfeng models. According to company insiders, these efforts are aligned with the broader strategy to increase Egyptian-made components in the final product.
Khaled Saad, Secretary-General of the Egyptian Automotive Manufacturers Association and CEO of Jinbei Royal Egypt, highlighted the increasing interest from Chinese automakers in the Egyptian market. Saad sees Egypt as a strategic export gateway to African and Arab markets, especially in light of recent policy reforms and government incentives.
New Factories and Expanding Capacity
Several other manufacturers are also ramping up their efforts:
Devo Filters is building a new factory on 2,700 square meters in Damietta, aiming to increase capacity and explore export opportunities across the region.
Ayad Steel Group is investing $10 million in complementary industries, producing 50 to 60 new automotive-related components using 60 compact, specialized machines. Chairman Wanis Ayad stated that the expansion does not rely on conventional production lines but on flexible manufacturing tailored for niche parts.
Trideco, another key player, plans to invest EGP 50 million to manufacture interior plastic parts using advanced technologies.
Pyramids Metal Forming, approved in August, is establishing a new factory on a 20,000-square-meter site to produce automotive-grade sheet metal and colored panels. The facility is expected to achieve 35% local content and export 10% of its production, creating 300 jobs in the process.
Foreign Trade Pressures and Local Response
Egypt’s drive to localize automotive manufacturing has taken on added urgency amid surging import costs. In the first half of 2025 alone, the country’s imports of auto parts jumped 71.9% year-on-year to reach $646.4 million, up from $375.9 million in the same period of 2024. This trend has further strained Egypt’s foreign currency reserves.
The government’s strategic objective is not only import substitution but export promotion. It aims to double vehicle production to 260,000 units annually by 2026, up from 95,000 units today, and reach 400,000 units by 2030, with 25% earmarked for export. If realized, this could bring in $4 billion annually in hard currency.
National Strategy Gains Momentum
The Egyptian Ministry of Industry and Trade has laid out an ambitious roadmap, including increasing the local content ratio to 60% in coming years. This is considered the cornerstone of the country’s localization strategy. By offering real financial incentives tied to value-added production, not just vehicle assembly Egypt hopes to transform its automotive landscape.
In July, Al-Mansour Automotive Group opened a new filter production plant in 10th of Ramadan City, investing $10 million in a facility capable of producing 10 million filters annually.
Ali Tawfik, Chairman of the Automotive Components Association, affirmed that manufacturers will now be rewarded based on their actual local value addition. “Each percentage point beyond the baseline gets you a bonus. This model creates a real incentive to innovate and localize,” he said.
As Egypt sets its sights on becoming a key automotive manufacturing base for Africa and the Middle East, these investments could be the foundation of a globally competitive industry, one that creates jobs, boosts exports, and strengthens the economy.
