Chinese investments in the Egyptian car: the new frontier for EV

Egypt is quickly becoming a key destination for Chinese car companies. Its strategic position on Suez canalone of the busiest maritime routes in the world, offers privileged access to European and Middle Eastern markets, facilitating quick and convenient exports. In addition to the geographical advantage, the Piano Vision 2030 of the Egyptian government aims to develop the local industry, increase exports and encourage technology transfer, thus creating a highly context attractive for foreign investments, in particular Chinese. In this scenario, Chinese car manufacturers see Egypt not only as a logistics platform, but as a strategic junction for their global supply chains. During the article we will deepen: Geely’s main investments, Mg (Saic Motor), Baic (Beijing Automotive Industry Holding Co.), Chery e Byd; The role of the Vision 2030 in align the Egyptian and Chinese interests and the logistical importance of the Suez channel for the investment strategies of the Chinese car manufacturers.

Geely

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January 15, 2025 Geely He inaugurated his first CKD system (Completely Knocked Down) in the Middle East and North Africa region at the 6th of October City in Giza, in Egypt. The investment amounts to approx 50 million dollars And the system uses advanced laser welding and robotic. The annual production capacity is currently of 30,000 vehicleswith the intention of increasing the national content and the range of models over time, starting from Emgrand and Coolray. Prime Minister Mostafa Madbouly stressed that the plant will serve both the national and export markets to Africa and the Middle East, strengthening the position of Egypt as a regional automotive pole. Geely also plans to export from Egypt to 30,000 vehicles per year.

Saic

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In December 2024, Saic Motorthe largest Chinese state automotive manufacturer, has made a strategic partnership with Mansour Groupthe main Egyptian automotive distributor. The collaboration has led to the establishment of Mac Mobility & Manufacturing, which will create a new automotive production plant in New Octaber City, in Egypt. The project provides for an overall investment of 135 million dollars and will cover an area of 126,000 square meters. The plant should come into production in the second half of 2026, with a production capacity that should reach the 100,000 units per year.

Baic

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In October 2024, Baic (Beijing Automotive Industry Holding Co.) constituted a joint venture with Alkan Auto (EIM group) to build a system of electric vehicles in the city of 6th Octaber. The plant of 120,000 m² it is supported by an investment of $ 30 million and it is expected that it will produce 20,000 electric vehicles in the first year, to get to 50,000 units within the fifth year. Location is expected to start 48% and go up to 58%with an estimate of 1,200 jobs created. Chery It has been present in Egypt since 2006 thanks to the partnership with Speranza Motors (Aboul Fotouh Automotive Group). Their continuous investments contribute to providing vehicles at accessible prices at the local level, while strengthening the know-how of the automotive industry. There Byd partnerships with Al Amal Group It includes production, distribution and after-sales services, mainly concentrated in the large Cairo area. This strategic position supports the byd ambitions to efficiently serve Africa and the Middle East. The proximity to the Suez canal and the main ports reduces logistical chokes, guaranteeing competitive exports to Europe and Africa

Vision 2030 and the Chinese role

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The program 2030 vision of Egyptlaunched in 2016 under the presidency of Abdel Fattoh El-Sisi, aims to encourage sustainable economic and industrial development, with particular attention to the expansion of green technologies and the creation of employment on a national scale. In this context, the automotive industry has been identified as a key strategic sector, with the aim of increasing the annual production of vehicles from the current 400,000 units at 500,000 by 2030, generating estimated revenues around 4 billion dollars per year. A fundamental component of the strategy consists in the location of the production of motor vehicles and components, supported by legislative reforms, infrastructure enhancement and customs concessions in specific industrial areas such as the city of 6 October, the city of the new October, Port Said Est and the City of 10 of Ramadan. These measures are part of an economic and fiscal policy aimed at attracting investments, improving competitiveness and strengthening the value chain in the automotive sector. A further strategic axis is represented by the promotion of electric mobility, which occupies a central position in the Egyptian industrial agenda. The government has planned theStart of the assembly of electric vehicles starting from 2025in addition to encouraging the adoption of private electrical vehicles and their integration into the public transport system. To this end, in 2022 the Fund for the ecological car industryin charge of financing projects aimed at transition to an automotive sector a low emissions. Within this context, Chinese car companies, including Geely, Mg (Saic), Baic, Chery and Byd, play a decisive role in the success of the View 2030. Their investments focused on the establishment of joint ventures in strategic industrial areas, exploiting reduced rates and government facilities for the production chain. In addition, these companies have contributed to the transfer of skills, through the training of the local workforce, the design of New production plants and the expansion of the production capacities intended for European and Middle Eastern markets.

Suez: the way to Europe

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China’s strategic expansion in the Egyptian automotive sector is deeply linked to the country’s unique geoeconomic position, in particular thanks to the Suez canal: one of the main maritime arteries that connects Africa to Europe, as well as crossed by 12% of world trade and almost 30% of Global annual Container traffic. For Chinese car manufacturers, this means that parts, sub -components and finished vehicles can reach the European markets, the Gulf and Africans with times and shipping costs reduced to a minimum. The location allows companies like Geely, Saic, Baic, Chery and Byd to assemble vehicles in Egypt and to quickly distribute them on several continents. Furthermore, by placing the production plants within Egypt, Chinese companies circumvent some of the growing commercial barriers and political sensitivity they have to face when they export directly from China to Europe or the United States. This is particularly relevant as the EU has increased i duties on Chinese electric vehicles on the basis of state grants. Europe remains one of the largest and most profitable car markets in the world, with beyond 10 million vehicles passengers sold every year. The EU-Egypt Association agreement It provides preferential access to European markets, making the country an Hub of assembly and highly convenient export for MG, Geely, Baic, Byd and Chery.

Conclusions

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The Chinese automotive presence in Egypt exemplifies a model of mutually advantageous geo -economic cooperation. While Egypt is ensured by crucial industries, advanced technologies, employment and production capacity in line with the View 2030China obtains a geostrategic production base with an unparalleled access to the markets of Europe, Africa and the Middle East. The Suez canal, the commercial agreements and the ambitious Industrial policies of Egypt they placed the country at the center of the global expansion of Chinese automotive production in the context ofBelt and Road (Bri) Initialities. With the maturation of these industrial partnerships, Egypt could become one of the most important automotive production and export hubs between Europe and Africa.