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Wednesday, 19 June 2019

Egypt-made MG cars soon as Mansour signs manufacturing JV agreement

INVESTMENT WATCH- China's SAIC Motor, Al Mansour Auto to manufacture MG in Egypt: Al Mansour Automotive will manufacture MG cars in Egypt with China's SAIC Motor through a joint venture, according to Xinhua, which appears to have broken the story. The JV should get to work during “the next 12 months,” Mansour COO Ankush Arora is quoted as saying. The report neither provided an investment value nor made it explicitly clear whether the cars will be manufactured or assembled (or both). Mansour, which became the exclusive local distributor of MG last year, will also launch the new MG ZS electric SUV “in the coming five months,” Arora added. We heard in March 2018 that SAIC, which took over the UK brand in 2011, was looking into the possibility of opening a plant in Egypt and had been looking for a local partner on the venture.

Good timing? The JV agreement comes days after we reported that the government is working on new incentives for car assemblers and manufacturers. The incentives could include a mix of customs discounts on components as well as potential capex drawbacks, among other measures. The move could help short up Egypt’s anemic auto exports: Egypt’s auto industry sold only USD 24.7 mn worth of product outside the country’s borders in 1Q2019, according to Capmas figures cited by the press.

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