Chinese Auto Giant BAIC Partners with Egypt’s Alkan Auto to Manufacture Electric Cars in Egypt
Chinese automotive giant Beijing Automotive International Corporation (BAIC) has signed an agreement with Egyptian company Alkan Auto to produce electric vehicles (EVs) in Egypt. The project’s initial production goal of 20,000 units is expected to expand to 50,000 units by the fifth year of the factory’s operation.
On October 28, 2024, BAIC and Alkan Auto, a subsidiary of Egypt’s Alkan Group, formalized this partnership to establish an EV production facility in Egypt. Present at the signing ceremony, Egypt’s Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel El-Wazir, emphasized that this agreement aligns with President Abdel Fattah al-Sissi’s vision of transforming Egypt into a regional industrial hub, attracting foreign automakers and developing related industries.
El-Wazir noted that the General Authority for Industrial Development has provided land for the facility and expressed commitment to support investors, streamlining the industrial licensing process to expedite production.
Spanning 120,000 square meters, the facility will start with an annual capacity of 20,000 units, aiming to reach 50,000 units by the fifth year. This production will serve both the local market and exports to Middle Eastern and African countries, creating 1,200 jobs.
The plant is set to begin operations by late 2025, with an initial local integration rate of 48%, increasing to 58% over time. Under Egyptian law, vehicles are classified as “locally manufactured” if they meet a minimum local content threshold of 45%, split into 17% for assembly and 28% for component production.
This development is part of Egypt’s sectoral policies designed to advance its automotive industry, enhance the value of locally-made parts, and attract investment in new assembly lines. Egypt aims to produce 500,000 vehicles annually, with 100,000 designated for export. To reach this target, the Egyptian government has introduced tax incentives to encourage foreign manufacturers to produce locally, aiming to boost the Egyptian automotive industry, which currently lags behind competitors in Morocco and South Africa.
The project is a significant step in Egypt’s efforts to revive its automotive sector, which has slowed in recent years. In 2020, only 44,821 passenger vehicles were assembled domestically, with the market dominated by brands like Nissan, Chery, Hyundai, and Chevrolet. Two companies—GH Ghabbour (assembling Chery and Hyundai models) and Mansour Automotive (assembling Chevrolet models in partnership with General Motors—lead the local assembly market.
Founded in 1958, BAIC is China’s sixth-largest automaker, producing over two million vehicles annually, including trucks and passenger cars under its brand and through joint ventures with Hyundai and Mercedes-Benz.
With this new partnership, Egypt aims to revitalize its automotive sector, creating a competitive and sustainable manufacturing base that strengthens its position in the regional and global markets.
