European automakers eyeing component manufacturing in Egypt?
European automakers eyeing component manufacturing in Egypt? Three European automotive manufacturers are looking at setting up “strategic partnerships” with auto component manufacturers in Egypt as they look to distance their supply chains from China, head of the Engineering Export Council Sherif El Sayad tells Hapi Journal. El Sayad did not disclose the names of the manufacturers. The council is currently working on briefing the manufacturers on the local market and how to make the proposed partnerships feasible according to their standards.
The global majors don’t yet seem interested in (re)starting assembling here in Egypt. Last year, several international automotive manufacturers — including Peugeot, Mercedes-Benz (which suspended assembly here four years ago), Kia, and Volkswagen — had all signaled they were looking at potentially assembling models here in Egypt. This came after the government began talking up a package of incentives to automakers designed to spur domestic automotive manufacturing and assembly, which finally earned Cabinet approval this March. The strategy will comprise legislative provisions, incentives, infrastructure improvements, and trade agreements with countries in the region and elsewhere.