The German consultancy firm hired to advise on the redrafting of the Automotive Directive should complete its work within a month, sources familiar with the matter tell Al Masry Al Youm. Industrial Development Authority head Ahmed Abdel Razek had said last month that the final draft of the law — which would grant local assemblers incentives to move further up the value chain to manufacturing — would be out in January, blaming the delay in redrafting the bill on the German firm. The Automotive Directive is being redrafted after disagreements over stipulations for local content requirements as well as the extent of incentives offered to manufacturers, which importers decried, claiming it would be detrimental for their business and a violation of freetrade agreements with the EU.

A business case for the Automotive Directive: Auto industry insiders are claiming that there is an ever-increasing backlog on orders for locally assembled cars. A source from GB Auto tells Al Mal that the company has an order backlog stretching for about a month on its locally assembled models. They also added that demand for locally assembled vehicles has outsripped supply, with the industry experiencing shortages in 4Q2017. Insiders also say that the main culprit had been difficulties in sourcing imported components. If the demand for more affordable locally-manufactured cars is as high as it is, how does it serve the market by not passing a law which would encourage and expand local manufacturing?

Former Trade and Industry Minister Mounir Fakhry Abdelnour threw his weight behind the Automotive Directive, denouncing claims made by importers that the act was made to grant an advantage to a few large assemblers such as GB Auto. Abdelnour, now a member of the board at GB Auto as well as other major Egyptian listed corporations, said the legislation aims to encourage all auto industry players to move into domestic production and allow smaller assemblers a chance to grow, according to Al Mal.