This step aligns with Egypt's goal of raising the percentage of local components in automotive manufacturing to between 70 and 80 percent and becoming a regional automotive hub. The country introduced its national strategy for developing the automotive industry in 2022 to meet the growing domestic demand for vehicles, attract global companies to invest in the Egyptian market, and boost exports.

Mohamed Abdel-Samad, Managing Director of Nissan Motor Egypt, noted that Nissan plans to manufacture 10,000 units of the new model for the local market and export 7,000 units, provided the model is included under the umbrella of Egypt's Automotive Industry Development Strategy.

In addition, Nissan is exploring plans to export the third model, which will be assembled locally.

As part of its expansion efforts, Nissan will also invest an additional $2 million to increase production across its three models. To meet local demand and export goals, Nissan targets an annual output of over 300,000 cars by 2025.

Abdel-Samad highlighted that the "Nissan Sunny" holds the highest local component percentage among passenger cars in the Egyptian market.

Nissan Egypt has already exported more than 16,000 locally manufactured "Sunny" cars and is targeting a 50 percent increase in export volume during the current fiscal year, compared to 2023.

The company also aims to boost its dollar revenue from exports, which has already exceeded $150 million.

Abdel-Samad further emphasized that Nissan Egypt is a major player in the Egyptian automotive market. It offers a combination of locally assembled and imported models while also supporting the development of electric vehicle technologies.

In terms of investment, Nissan has committed $240 million to its Egyptian operations, with the factory's current production capacity standing at 25,000 cars annually.

The company employs 950 people directly and 4,000 indirect workers, contributing significantly to the local economy.

In related news, Prime Minister Mostafa Madbouly met with Nissan Motor Corporation representatives in August to discuss expanding the automotive industry in Egypt and assured them of the government's support.