The first EV prototype was produced by the Arab Academy for Science, Technology and Maritime Transport (AASTMT) and is planned to be offered in the market at an affordable price.
In a meeting with the Dean of the Applied Research Department at AASTMT Mohamed El-Ghamry and Minister of Higher Education Ayman Ashour, the premier expressed the state’s interest in the project which achieves the goal of localising the manufacturing of EVs.
The AASTMT unveiled last week the EV at the seventh Cairo International Exhibition for Innovation, where El-Ghamry said that the EV will be available at an affordable price of EGP 95,000.
El-Ghamry said in the meeting that the manufacturing of the EV is planned to start within six months with 60 per cent of the vehicle made of local components. He added that there is a plan to raise the local components of the EV to 90 per cent within 24 months through a research project funded by AASTMT that aims to manufacture all the electronic and electric components locally.
He added that a 50,000-metre factory complex to manufacture EVs will be established, noting that the project aims to meet the needs of the Egyptian market.
El-Ghamry pointed out that "in the case of producing the Egyptian car at an economically impressive cost, foreign companies have expressed their willingness to strike partnerships to establish a factory to produce electric car batteries and to manufacture engines locally."
At the end of the meeting with the prime minister, El-Ghamry requested that the project be granted the golden licence which gives investors approval to buy/rent land and operate projects without having to secure prior approval from multiple government bodies.
He also requested granting the EV a licence as an alternative to Tuktuks with a maximum speed of 45-60 60 km/h. Madbouly expressed his preliminary approval to the project.
El-Ghamry also requested the exemption of all the production components of the EV from customs, like the exemption enjoyed by imported and manufactured electric cars abroad, with an incentive of EGP 50,000 for buyers of the Egyptian-made EV. Madbouly said these requests will be studied with the concerned ministers.
El-Ghamry also called for postponing the second installment of the land allocated at the 10 Ramadan city to establish the EV factory complex which is due after two years.
Madbouly said there were recently approved facilities that allow industrial investors to obtain the land, pay the down payment followed by a two-year grace period to complete the construction of the factory before starting to pay the installments.
During the fourth edition of the World Youth Forum in 2022, Egypt’s President Abdel-Fattah El-Sisi announced that the country would produce its first EV in 2023 as part of the government's strategy to adopt a green economy.
The Egyptian government has also expressed its openness to localising other aspects of the EV industry.
In April, the Ministry of the Public Business Sector announced that 10 companies and consortia had qualified to tender for the management and operation of electric car charging stations in Egypt.
In June, the Egyptian government launched a national strategy for developing the automatic industry in the country including the EV manufacturing industry.
In October, Egypt’s Senate approved a new government-drafted bill aimed to both establish a supreme council for vehicle manufacturing and set up a fund to provide financing for an environment-friendly EV industry in Egypt.