During a meeting to discuss support for car manufacturers, the ministries of industry, finance, investment, and foreign trade agreed to form a committee. This committee, including members from their automotive units and the Supreme Council for Automotive Industry, will review data and improve operations under the National Automotive Industry Development Programme (AIDP).
The move aims to make full use of the programme, which was launched to localize vehicle manufacturing, attract international investment, boost exports, and reduce reliance on imported cars and components.
The committee will examine local manufacturing challenges and recommend improvements through the programme, including increased financing incentives.
The programme is part of Egypt’s national strategy for the automotive sector. It aims to raise local value-added content to 60 percent, increase the share of domestic industrial components above 35 percent, and reach an annual production volume of 100,000 vehicles.
Egypt has been strengthening its manufacturing sector, one of its five key sectors in its economic narrative, to achieve a growth target of 7.5 percent by 2030, attract $24.6 billion in annual foreign direct investment (FDI), and increase non-oil exports by 15–20 percent annually.
The government is also reviewing its National Industrial Strategy to implement practical measures that support production and investment, improve competitiveness, expand output, and address structural challenges in the manufacturing sector.
The country’s automotive sector showed stability in 2025, as the Egyptian pound strengthened against the US dollar, and total vehicle sales were 23 percent higher than the year-to-date average in December 2025.
This followed a decision by the Central Bank of Egypt in March 2024 to raise overnight deposit and lending rates, as well as the main policy rate, by 600 basis points to 27.25 percent as part of its efforts to curb inflation.
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