Egypt localizes EV assembly, production to lift its auto sector, reach sustainable goals

Egypt is making a push towards localizing the assembly and production of electric vehicles (EVs) to boost its auto sector while pursuing sustainable development.

Egyptian Prime Minister Mostafa Madbouly on Sunday reopened the state-owned Nasr Auto Company following a 15-year hiatus. Now the company has a capacity to produce more than 40,000 electric vehicles a year as well as EV batteries.

"Egypt, according to the prime minister, now has the capacity to produce half a million electric cars annually and the contracts signed with foreign firms so far will produce about 100,000 cars a year," said Mahmoud Khairy, a car trader and expert from Egypt.

Having free access to European and African markets, the most populous Arab nation can also leverage its strategic geographic location and huge market potential to become a regional hub for exporting self-manufactured vehicles.

"The country will benefit from local production by being partially self-sufficient in vehicles. This means less expenditure on hefty import bills," said Mahmoud Khairy.

The Egyptian government offers various incentives including tariff and tax breaks to encourage foreign companies to set up production locally, which in turn brings in advanced insights and expertise for EV manufacturing.

Egypt has witnessed booming sales of EVs. Electric cars increased from the beginning of July 2021 until the end of June 2024, raising the total number of licensed electric vehicles to 7,213, with BYD as the second best-selling car brand, according to the data.

Several European and Asian brands have already signed up to establish assembly plants in Egypt, including those from China.

Waleed Suleiman, the CEO of Spark EV Company in Egypt, is discussing with his Chinese counterparts plans to establish an assembly plant for Chinese EVs in Egypt.

"The Chinese cars are very advanced, high quality, very reasonable price. When you compare it with European cars and American cars, it's far away. If not a better quality, it's the same quality, but when it comes to price, it's much much lower than the other ones, and that's why people tend to go and buy Chinese cars," he said.

Experts from auto industry have also emphasized the need for EV infrastructure to keep up with the expansion plans.

"The number of recharging points increase gradually, covering main roads and highways and we are building new ones daily.There are 8 companies licensed to establish charging points," said Ahmed Zain, owner of Alienz Auto.

Egypt localizes EV assembly, production to lift its auto sector, reach sustainable goals

Israeli President Isaac Herzog on Sunday formally tasked opposition leader Gadi Eisenkot with forming a government, giving the former military chief a chance to replace Prime Minister Benjamin Netanyahu after Netanyahu's right-wing coalition lost its parliamentary majority in October's election.

Eisenkot, leader of the centrist Yashar party, received recommendations from 67 lawmakers in the 120-seat parliament, compared with 46 for Netanyahu.

At the ceremony, Herzog called for unity and a "stable government that can last."

Eisenkot warned that Israel was facing a "critical moment," saying the objectives of its multi-front conflicts "remained unfulfilled," its international relations were in a "devastating crisis," and its democracy was facing one of its gravest challenges.

"If we continue on the current path, we risk reaching a point of no return," he said, calling for new leadership "that people can look in the eye and trust."

He said he was convinced it was possible to form a new government with a substantial majority in the Knesset, and that he was open to Netanyahu's Likud party and far-right Finance Minister Bezalel Smotrich's Religious Zionist Party joining a government under his leadership.

He said they were invited to "support the government under my leadership and the principles I've outlined."

"I intend to be the prime minister of all citizens of Israel, those who voted for me and those who haven't," Eisenkot said.

Eisenkot has 28 days to form a government, with a possible 14-day extension. Netanyahu will remain caretaker prime minister until a new government is sworn in.

Eisenkot's four-party alliance holds only 48 seats and would need support from Arab lawmakers or other parties to form a government.

Netanyahu on Saturday called for a national unity government, while Eisenkot's party said Likud could join a government led by Eisenkot if it abandoned its far-right allies.

Under Israeli law, if Eisenkot fails to form a government within the allotted time, Herzog may assign the task to another candidate, or at least 61 members of the 120-seat Knesset can ask the president to entrust the mandate to a candidate of their choice. If these efforts also fail, the Knesset will be dissolved and new elections will be held.

Israeli opposition leader Eisenkot officially receives mandate to form gov't