Chinese automaker First Automobile Works (FAW) has entered into a partnership agreement with Egyptian group GV Investments to establish a plant for affordable electric cars in Egypt, as reported by Bloomberg on Monday, May 27, 2024.
The factory will produce the cheapest model from the FAW group to meet the needs of the ride-hailing sector in Egypt. It will then ramp up production for export.
“As part of this agreement, a subsidiary of GV Investments will start locally producing the cheapest model from the FAW group in the first quarter of 2025. The ride-hailing sector will be a key target market for these vehicles,” said Sherif Hamouda (pictured), the president of the Egyptian group, to Bloomberg, without specifying the investment amount.
He added that the production capacity of electric vehicles would increase over the next three to five years, aiming to ultimately produce cars with 65% locally sourced components for export to other countries in Africa, the Middle East, Europe, and Latin America.
As the most populous country in the Arab world with 105 million inhabitants, Egypt currently has only a few thousand electric cars. This North African country is striving to position itself as a regional industrial hub by offering significant tax and land incentives to foreign investors.