Three Automakers, Including Mansour Automotive, Nissan and General Motors, Express Interest in Joining Proposed Programme as Government Moves to Localize EV Manufacturing
Egypt is considering launching its first initiative to replace conventional fuel-powered vehicles with electric cars in 2027, as part of the government’s broader strategy to accelerate the transition towards green transportation, reduce emissions and develop a domestic electric vehicle industry.
The proposed initiative, provisionally named the “Electric Vehicle Adoption Support Initiative,” aims to encourage the wider adoption of electric vehicles by supporting the transition from traditional internal combustion engine cars to cleaner transportation alternatives.
Three major automotive companies have reportedly submitted applications to participate in the proposed programme: Mansour Automotive, Nissan and General Motors, reflecting growing interest among international and local industry players in Egypt’s emerging electric mobility market.
Egypt Considers Customs Duty Exemptions for EV Production Inputs
As part of its efforts to encourage investment in electric vehicle manufacturing, Egypt is also studying the possibility of exempting electric vehicle production inputs from customs duties.
Currently, customs duties stand at 5% on batteries and 2% on electric motors, with the proposed exemptions expected to support manufacturers, reduce production costs and strengthen the competitiveness of locally manufactured electric vehicles.
The move would form part of a broader government strategy to attract automotive investments, deepen local manufacturing and encourage the development of domestic supply chains for electric vehicle components.
Localizing Electric Vehicle Manufacturing
The government’s plans extend beyond encouraging consumer adoption, with a strong focus on establishing a competitive domestic electric vehicle manufacturing ecosystem.
A major milestone in this direction is the anticipated launch of Egypt’s first locally manufactured electric car, the Dongfeng MAGE EV, produced at El Nasr Automotive’s facilities in partnership with SN Automotive and Al Safi Group.
The project is expected to contribute to the development of local manufacturing capabilities, with a domestic content ratio of up to 45%, while creating opportunities to expand the production of electric vehicle components and related technologies.
Egypt’s Electric Mobility Market Enters a New Phase
The proposed 2027 initiative, alongside potential customs incentives and local manufacturing projects, reflects Egypt’s ambition to position itself as a regional hub for electric vehicle production and green mobility.
By combining incentives for consumers and manufacturers with investment in local production, the government aims to accelerate electric vehicle adoption, attract international automotive players, reduce dependence on imported vehicles and strengthen the contribution of the automotive industry to the national economy.
If implemented, the initiative could mark an important turning point in Egypt’s automotive market, opening new opportunities for investment, technology transfer and the expansion of sustainable transportation across the country.
