Automotive industry in Egypt

The automotive industry in Egypt has been a state priority since the late 1950s, symbolizing national industrialization and economic prestige. Since the launch of the first locally manufactured car, Ramses, Egypt has attracted major international brands, including BMW, Jeep, and Mercedes-Benz. As of 2024, 15 manufacturers assemble vehicles locally, with domestic content exceeding 45% and accounting for over 60% of national sales.

In 2022, the government launched the Automotive Industry Development Strategy, aiming to establish Egypt as a regional hub for car manufacturing, particularly in Africa. The strategy includes fiscal incentives, policies to boost local component use, and support for low- and zero-emission vehicles through the eco-friendly automotive industry support fund. The Supreme Council for the Automotive Industry and the Automotive Industry Unit were established to coordinate implementation, regulatory reform, and investor engagement. Several agreements were signed with companies such as Nissan, General Motors, Stellantis, and Proton to expand local production, including in designated industrial zones like Ibaz and Ain Sokhna.

Despite investment momentum, challenges remain. A 2023 study by the German University in Cairo identified skills mismatches and weak labor-market alignment as major constraints, noting Egypt’s low global talent competitiveness ranking. Structural reforms in education and vocational training are seen as critical to improving workforce readiness and supporting sustainable industry growth.