Back to the complete issue
Wednesday, 17 February 2021

Mitsubishi to begin assembling cars in Egypt

Mitsubishi Motors is planning to start assembling cars in Egypt using a Nissan-owned plant, the local press reports, quoting sources close to talks between the two manufacturers. The two had reportedly signed an agreement that would see Mitsubishi roll out locally-assembled trucks as a starting point. Locally-assembled Mitsubishi passenger cars could then be next if the truck models successfully capture a “reasonable market share,” the sources said. Neither Nissan Egypt nor Mitsubishi replied to requests for comment as of dispatch time this afternoon.

Wait, aren’t they rivals? Globally, Mitsubishi and Nissan are partners in the Renault Nissan Mitsubishi alliance cobbled together by Carlos Ghosn. Nissan acquired a controlling stake in Mitsubishi back in 2017.

Gov’t automotive strategies bearing fruit? We’ve been keeping an eye on the package of incentives to automakers designed to spur domestic automotive assembly, which earned Cabinet approval in March 2020. The package includes giving global players access to incentives, infrastructure improvements, and Egypt’s network of trade agreements. Talks of those incentives has previously led several international automotive manufacturers — including Peugeot, Mercedes-Benz (which suspended assembly here four years ago), Kia, and Volkswagen — to announce they’re looking at potentially assembling models here in Egypt.

Other expected drivers for local assembly include a parallel strategy to kickstart a market for electric vehicles and while simultaneously pushing a transition to natural gas. Earlier in February, state-owned El Nasr Automotive said it will begin assembling EVs in Egypt sometime in July under contracts it finalized with China’s Dongfeng in January. The government has been pushing for a transition to EVs with incentives including set charging prices, subsidies of up to 50k per vehicle, as well as customs breaks. This is part of an overall direction to promote the use of clean energy on the roads, which also includes the state’s multi-year natural gas transition plan, which will see major domestic players investing to put dual-fuel cars in showrooms.

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.