According to a statement on Wednesday, Industry Minister Khaled Hashem made the remarks during an expanded meeting with the Presidential Advisory Council for Egyptian Scientists and Experts, chaired by Hani Azer, alongside representatives of automotive manufacturers and component suppliers, to discuss implementing a roadmap prepared by the council to expand domestic vehicle manufacturing.
The council's study aims to double Egypt's vehicle production over the next five years by increasing local manufacturing of automotive components, particularly metal parts and complete vehicle bodies, strengthening the sector's competitiveness and supporting Egypt's ambition to become a regional automotive manufacturing hub.
Hashem announced the formation of a joint committee comprising representatives from the Ministry of Industry, the Presidential Advisory Council for Egyptian Scientists and Experts, and automotive manufacturers to develop an implementation framework for the council's recommendations. He added that the meetings would be held regularly to translate proposals into practical outcomes.
The discussions also focused on establishing an integrated industrial ecosystem linking vehicle assembly plants with domestic supply chains capable of producing components that meet the standards of international parent companies. Participants also explored ways to leverage Egyptian engineering expertise in vehicle design, tooling, manufacturing processes, and testing.
Future proposals included expanding local production of steel sheets for additional vehicle models assembled in Egypt, exporting locally manufactured components to regional markets through partnerships with global automakers, developing lighter materials to improve fuel efficiency, and preparing to manufacture metal components for electric vehicles.
Beyond vehicle assembly
Hashem said the ministry aims to move beyond vehicle assembly by establishing a fully integrated automotive manufacturing industry covering all stages of the value chain.
"Assembly is only one step toward making Egypt a vehicle manufacturing nation," he stated, stressing that the strategy focuses on expanding local component production, deepening industrial localization, transferring advanced technologies, and building an industrial base capable of meeting domestic demand while serving export markets.
The minister said the government is also working to attract investment in the casting industry, describing it as a key pillar of efforts to localize manufacturing in heavy and engineering industries, particularly automotive production.
He added that the ministry aims to localize advanced casting technologies, rehabilitate existing factories, establish integrated production facilities to reduce imports of key industrial inputs, improve the competitiveness of Egyptian products in regional and international markets, and implement the Automotive Industry Development Programme (AIDP).
Vehicle replacement programme
Hashem revealed that the Ministry of Industry is coordinating with the Ministry of Finance to launch a programme to replace ageing vehicles, supported by incentives encouraging consumers to switch to newer, more efficient, and environmentally friendly cars.
The initiative is expected to increase demand for locally manufactured vehicles while generating larger volumes of scrap metal that can be redirected to the domestic industry.
The minister noted that vehicle scrappage is a key component of the ministry's industrial strategy, helping maximize the use of local resources and meet the steel industry's needs through greater reliance on domestically generated scrap, thereby reducing Egypt's import bill.
Automotive manufacturers participating in the meeting outlined their efforts to increase local content and value added by expanding the production of automotive parts and components.
They also expressed readiness to further increase local manufacturing, provided sufficient raw materials and skilled labour are available, saying these conditions would help convince their parent companies to manufacture a larger share of vehicle body components in Egypt.
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