· Egypt’s state-owned El Nasr Automotive Manufacturing Company and Dongfeng Motor of China have entered into an agreement to manufacture electric cars
· The agreement will be a lifeline for El Nasar Automotive Manufacturing Company which had closed down since 2009
In a significant development, Egypt’s state-owned El Nasr Automotive Manufacturing Company and Dongfeng Motor of China have entered into an agreement to manufacture electric cars in Egypt. The agreement will be a lifeline for El Nasar Automotive Manufacturing Company which had closed down since 2009. The company was founded by the late President Gamal Abdel Nasser in 1959, as part of his vision, to transform Egypt into an industrial hub. El Nasr operated assembling Fiat cars, until the government liquidated its assets in 2009. As per the agreement, El Nasr will produce 25,000 electric vehicles annually.
Political observers are of the view that the collaboration will be mutually beneficial and has great potential. Egypt can be a gateway to export these vehicles to Africa, Asia and MENA region. Tie up with Egypt is critical to the ambitions of China’s electric vehicle industry as the manufacturers have been exploring opportunities for a long time to enter foreign markets. COVID 19 has urged Chinese automakers to focus on a long-term strategy based on market penetration for sustained business growth.
However, Egypt will have to do a lot of homework to create local demand for electric vehicles in Egypt, observe experts. Sufficient infrastructure like charging stations should be in place in order to induce demand. Egyptian Minister of Public Enterprise Sector Hisham Tawfik said that Egypt proposes to boost the demand for electric vehicles through a three-pillar strategy including charging stations and financial assistance for new buyers. He added that the Ministry of Electricity will build 3,000 charging stations across the country for over three years.
Africa with its appetite for investment to revive its economies and create jobs Post COVID offers boundless opportunities. At the same time, Africa is a key market, as Chinese firms can often be highly cost competitive compared to Western automakers.
