According to Bloomberg, China's FAW Group Corporation (First Automobile Works) is set to collaborate with an Egyptian company to manufacture affordable electric vehicles in the most populous country in the Middle East.
Sherif Hamouda, Chairman of GV Investments, based in Cairo, claimed that under the agreement between the two parties, their subsidiary, GV Auto, will commence local production of FAW's affordable electric vehicles in the first quarter of 2025. He stated that these vehicles would primarily be used for ride-hailing services but declined to disclose the total value of the deal.
Hamouda indicated plans to expand production scale over the next three to five years, aiming for 65% of the vehicle's components to be sourced locally, with the final vehicles destined for export to the Middle East, Africa, Europe, and Latin America. He added that industrial facilities required for vehicle production could cost up to $20 million.
The electric vehicle ambitions of this Egyptian firm represent the latest move in the North African country. Currently, Egypt, with a population of approximately 105 million, has only a few thousand electric vehicles plying its busy streets. Following two years of economic crisis and forex shortages, Egypt is actively encouraging local industrial development to further unlock its potential as a manufacturing and export hub.
In recent years, the state-owned Egyptian car company, El Nasr Automotive Manufacturing Co., has been seeking partners for its electric vehicle plans. Meanwhile, Al-Mansour Automotive, with a long-standing partnership with General Motors, has also turned its focus to producing electric vehicles in Egypt, along with importing and selling Cadillac models.
GV Auto plans to introduce the FAW E05 to Egypt initially, which is one of the world's most affordable electric vehicles, typically used for taxi services. Hamouda declined to disclose its price in Egypt, but in China, it starts at approximately $17,500.
However, given the limited number of electric vehicle charging stations in Egypt currently, Hamouda admitted, "Changing the culture of fossil fuel-driven cars isn't easy."
"Without government push, electric cars won't spread," Hamouda urged for more national incentives for the electric vehicle industry to encourage potential buyers.
