El Nasr to sign contracts next month with China’s BAIC Group to jointly manufacture EVs in Egypt
We finally have a name: BAIC Group is El Nasr’s partner of choice in manufacturing electric vehicles. El Nasr Automotive has signed an MoU with Chinese car manufacturer BAIC Group to produce EVs in Egypt and is planning to sign final contracts by the end of July, a source with knowledge of the matter told Enterprise.
Who’s going to be doing what: The two sides are currently discussing the details of the contracts, with negotiations still ongoing on what each side would bring to the table. El Nasr is negotiating the transfer of intellectual property, China supplying components to the Egypt factory, setting up production lines, and hiring technical experts from abroad for technical assistance during the start of production, the source added.
The venture will be in line with local component quota requirements: Some 40-50% of the components will be manufactured and sourced in Egypt, they said. Over time, El Nasr aims to increase this proportion to 60-70%, the source added.
El Nasr is also partnering with Germany’s FEV Group to consult on how to build the EV battery sector from scratch while also looking for a Chinese partner to help with the manufacturing aspect, the source told us.
Production is expected to begin by the middle of next year with the aim of putting out the first EVs on the market by 4Q2023.