Back to the complete issue
Tuesday, 22 September 2020

Raya Auto to invest EGP 200 mn in EV production

INVESTMENT WATCH- Raya Auto plans to invest EGP 200 mn in local EV assembly over the next three years: Raya Holding’s automotive arm, Raya Auto, is investing EGP 200 mn in the local production of electric vehicles in the next three years, CEO Mohamed El Naggar said in an emailed statement (pdf). The company now has an annual production target of 35k light transport golf cars as well as two and three-wheeler vehicles, which would give it a 10% share of the light transport market. So far, Raya Auto has made good on EGP 50 mn of these investments in 2020, El Naggar told the local press.

The increased investment comes as Egypt encourages a shift towards EVs. The government began working on incentives to promote the use of EVs last year. A cornerstone of this framework involves subsidies of around EGP 50k that will be doled out for the first 100k locally-produced EVs. We took a deep dive into this strategy and the problems manufacturers and consumers face in the shift to EVs in a recent Hardhat report.

CORRECTION- 22 September 2020
An earlier version of this story incorrectly stated that the size of the investment was USD 200 mn. The correct amount is EGP 200 mn.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.