Back to the complete issue
Tuesday, 11 May 2021

No more used EV imports as industry gets ready for local assembly

Importers can no longer bring in used electric vehicles (EVs) under a new Trade Ministry decision designed to boost local EV assembly. EVs imported from abroad must also be the latest model, which is a sharp u-turn from a 2018 decision by then-Trade Minister Tarek Kabil, which had allowed the import of second-hand EVs at zero custom charges provided they were less than three years old. The decision aims to “spur the development of a local EV industry in cooperation with major international auto companies,” minister Nevine Gamea said.

As of January, it was estimated that only 1k EVs were imported by showrooms or directly by end users since the Kabil-era decision was implemented, Ahmed Zein, an industry expert, told AlbawabhNews at the time. This was hoped to be a starting point for a wider rollout of EVs on the road, Zein said.

Now we’re pivoting to EV assembly, which is due to start as early as next month: State-owned El Nasr Automotive will be leading the charge (sorry, we couldn’t help it) in an agreement with China’s Dongfeng finalized in January. Mitsubishi Motors also said earlier this month it plans to use a Nissan-owned assembly line to start rolling out electric trucks and passenger cars.

So far, the government is relying on a mix of incentives to put more EVs on the road. This includes production subsidies for local players at up to EGP 50k per vehicle, set electricity prices used at charging docks, and customs breaks for imported components.

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.