Hello Lykkers! Buckle up for Egypt’s automotive revolution! Big things are happening in Egypt's car industry, and it’s all thanks to a bold new strategy that is shifting gears toward a more self-sufficient automotive market.

From a rise in locally assembled vehicles to exciting growth predictions, Egypt is accelerating into the future of car manufacturing. Here’s everything you need to know about the changes, growth, and what this all means for Egypt’s economy.

The National Automotive Strategy: A New Vision for Local Manufacturing

In 2022, Egypt set the wheels in motion with its National Automotive Strategy, a plan to develop the country’s local car production. The goal? To reduce dependence on imported vehicles while ramping up locally assembled car numbers to meet rising demand.

With a partnership between the government, local manufacturers, and international players, this strategy is expected to generate a staggering $8 billion in revenue per year by the next decade.

The strategy includes several major moves to boost local production, including:

- New customs duties to protect and encourage the domestic auto industry.

- Creation of the Supreme Automotive Council to secure funding for environmentally friendly cars.

- A new incentive law to boost local manufacturing and strengthen supply chains.

The overarching aim is clear: transform Egypt into a major hub for automotive production, benefiting not just the local market but also export opportunities.

Strong Local Car Sales: A Positive Trend in 2024

The impact of these strategies is already showing results. In 2024, Egypt saw a massive 31.7% increase in sales of locally assembled cars, reaching about 43,100 units. This growth aligns with predictions that Egypt is on its way to becoming the second-largest car producer in North Africa, trailing only Morocco.

In fact, 2025 is starting off with an even stronger performance. In January, local car sales surged by 65.6% compared to the same month the previous year, showing that Egypt’s automotive industry is gaining traction and will likely continue this upward trend.

A Historic Comeback: Nasr Cars’ Revival

Let’s take a step back in time. Egypt’s automotive industry has seen its ups and downs over the years, and one of the most iconic names in the country’s car history is Nasr Cars. This company was once a dominant player in the local and African car markets, but after facing challenges, Nasr Cars ceased production in 2009.

Fast forward to 2024, and Nasr Cars is back, marking a significant moment for Egypt’s automotive sector. The return of this historic brand symbolizes a strong rebound and a renewed focus on local car manufacturing.

Why Are Locally Assembled Cars Gaining Popularity?

You might be asking, "Why the sudden interest in locally assembled cars?" Several key factors are at play here:

1. Government Support – With incentives aimed at promoting local manufacturing, more car companies are investing in Egyptian production.

2. Rising Import Costs – Imported cars have become more expensive due to currency fluctuations and high international shipping costs.

3. Foreign Currency Challenges – The ongoing currency crisis has made it difficult to rely on imported cars, creating a greater need for local production.

As a result, more Egyptians are opting for locally made vehicles, which are often seen as more affordable and practical compared to their imported counterparts.

What’s Next for Egypt’s Automotive Industry?

The outlook for Egypt’s automotive industry is incredibly bright. While the current production still lags behind demand, the government’s efforts to improve local supply chains, build infrastructure, and offer incentives are paving the way for long-term success. By 2030, Egypt is expected to be a leading force in the North African automotive sector, with a steadily increasing share of local manufacturing.

Egypt's government has already allocated significant resources—1 billion Egyptian pounds in the 2024-2025 budget—to support the growth of this sector. As more investors flock to the market, and local manufacturers ramp up production, Egypt is well on its way to becoming a key player in global car manufacturing.

So, buckle up—Egypt’s automotive industry is on the fast track to success, and the ride has only just begun!