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.