Egypt

Report to "Ministers’ information" About developments in the automotive industry locally and globally

The Information and Decision Support Center of the Council of Ministers issued a new report in which it shed light on the automobile industry in terms of analyzing global trends in production and international trade, in addition to addressing the global transformation in the automobile industry towards smart and sustainable mobility systems, highlighting the most important global leading companies in this field. It also addressed efforts to localize the automobile industry in Egypt, through analyzing supportive government policies, reviewing national initiatives, and future growth opportunities including… It contributes to strengthening Egypt’s position as a regional center for the automotive industry.

 

The report explained recent global trends in automobile production, indicating that the total global production of vehicles of various types (motor vehicles) reached about 92.5 million vehicles in 2024, compared to 91.83 million vehicles in 2019, an increase of 0.73%, according to the International Organization of Automobile Manufacturers (Oica). As for the global production of passenger cars (cars), its production reached 67.67 million cars in 2024, thus occupying the largest share of motor vehicles production globally at 73.2% of the total production. China occupied the forefront of passenger car producing countries, with its production reaching 27.48 million cars in 2024, equivalent to 40.6% of the total global production volume of passenger cars, followed by Japan with 10.6%, and India with 7.4%.

 

The report indicated that vehicle trade is considered one of the types of trade that occupies great importance in the global economy, as it occupies Exports of vehicles, their parts and accessories (other than railways or trams) ranked fourth in terms of the total value of global exports of goods in 2024, with a value of $1.8 trillion, or 7.5% of total global exports.

 

At the level of passenger cars alone, the value of global exports of them reached about 948.13 billion dollars in 2024, an increase of 39.8% from its value of 678.38 billion dollars in 2015, and global imports of it amounted to 977.21 billion dollars in 2024.

 

The report indicated that the value of German exports of passenger cars was 174.55 billion dollars in 2024, where Germany was the The largest exporting country with 18.4% of total global exports of passenger cars, followed by Japan with 11.3%, and China with 9.5%. The value of American imports of passenger cars reached $219.5 billion in 2024, as the United States is considered the largest importing country of passenger cars in the world, accounting for 22.5% of total imports, followed by Germany with 7.3%, and the United Kingdom with 5.8%.  

 

The report stated that the concept of mobility Smart mobility is based on integrating technological solutions to reach a more environmentally friendly model in the transportation sector, while sustainable mobility is derived from a broader concept related to sustainable development, as its main focus is on ensuring that our transportation systems meet the economic, social, and environmental needs of society while reducing their undesirable effects on the economy and society. And the environment.

 

The report stated that the main drivers of the shift towards smart and sustainable mobility are: economic, environmental, security, and social motives, explaining that the smart and sustainable mobility system includes a variety of innovations, including:

 

-mobility technologies Smart, which works to improve the flow of cars and dynamic control of movement, and includes a group of technologies: the Internet of Things (IoT), Artificial Intelligence (AI), and fifth generation technology.

 

-Electric vehicles (EVs): These are vehicles that rely on electric energy as an alternative to fuel. Fossil.

 

-Ride-sharing and shared mobility platforms: by adopting shared mobility models such as: car-requesting services as needed, and car-sharing via smart applications.

 

-Autonomous driving: Self-driving vehicles rely on artificial intelligence, advanced sensors, And predictive algorithms, which enable them to reduce accidents resulting from human error.

 

-Recycling: This process focuses on recovering components and extracting metals such as steel and aluminum, making it one of the most efficient processes in using materials, as about 86% of the components can be recovered The report drew attention to the fact that the global market for smart transportation has witnessed remarkable development in recent years, with the total value of this market reaching about 124.6 billion US dollars in 2024, an increase of 15.2% compared to 2022, and the global market for smart transportation is expected to witness strong growth at a compound annual rate of 12.8% during the period (2025 – 2034).

 

At the level of regions around the world, North America leads the smart mobility market thanks to its advanced technological infrastructure, its widespread adoption of electric vehicles, and its large investments in smart city projects. In 2024, the North American region dominated the smart transportation market by about 33% of the global market share for smart transportation, with total revenues amounting to about $42 billion.

 

Despite the remarkable progress in the field of smart transportation, there are still a number of challenges facing this field, most notably privacy and cybersecurity issues, which are necessary to maintain public confidence in modern technologies. The most prominent of these challenges are the following: security challenges, Environmental challenges, technical challenges, legislative challenges, financing challenges, and social challenges.

 

The report explained that Egypt has paid great attention to achieving comprehensive industrial development, based on its firm belief that industry represents the engine of sustainable development, and has also been keen to transfer technology and localize modern industries, in addition to launching a number of industrial initiatives that It aims to enhance competitiveness and raise the quality of products to comply with international standards.

 

The report explained that one of the most prominent development policies supporting the localization of the Egyptian industry is the establishment of the Executive Council for Import Substitution and Deepening Local Product in 2021 to unify efforts and coordination between relevant authorities, and launch the Egypt Digital Industrial Platform to make all services available. Industrial electronically to facilitate procedures and make it easier for investors to issue land services and industrial licenses directly from one site only, and pay all fees through the electronic payment system. In addition, the National Initiative for the Development of Egyptian Industry “Ebdaa” aims to support and deepen national industries to rely on the local product and reduce imports, by enhancing the role of the private sector in localizing development and innovation. In the industrial sector.

 

The report highlighted the National Strategy for Industry (2024-2030): which aims to raise the contribution of the industrial sector to the national product from 14% to 20% annually by 2030, and to raise the percentage of green industries’ contribution to the gross domestic product to 5%. Doubling the number of job opportunities in the industrial sector from 3.5 million to 7 million.

 

The report reviewed the state’s most prominent steps to localize the automobile industry in Egypt, which included: the national strategy for the localization of the automobile industry in Egypt, the establishment of the Supreme Council for the Automotive Industry, the Fund for Financing the Environmentally Friendly Automotive Industry, the Automotive Industry Unit affiliated with the Ministry of Industry, and the National Program for the Development of the Automotive Industry. (AIDP), and the New Automotive Production Incentives Programme.

 

The report also touched on the financial allocations for the localization of the automobile industry, which included supporting the automotive industry strategy, as an amount of 5.2 billion pounds was allocated in the draft state general budget for the fiscal year 2025/2026, and this funding is directed to support the programs of the Automotive Industry Finance Fund. Environment.

 

The total number of companies established in this field reached about 192 companies, which reflects the growing interest in investing in this vital sector. The total flow of issued capital to these companies amounted to about 7,205.52 million pounds, which is a strong indicator of investors’ confidence in the future of the local industry.

 

Regarding the size of the automobile market in Egypt; During the period from January 2023 to May 2025, the market witnessed remarkable growth – according to the Automotive Market Information Council (AMIC EGYPT) bulletin issued in May 2025 – as sales increased from about 5.38 thousand cars in January 2023 to 14.3 thousand cars in May 2025, which reflects gradual and stable growth. The size of the car market in May 2025 also increased by 127.7%, compared to 6.28 thousand cars during the same period in 2024.

 

The total size of the car market in Egypt during the period from January to May 2025 reached about 58.08 thousand cars, an increase of 94.83% compared to 29.81 thousand cars during the same period of the year. 2024.

 

The data also showed that the size of the passenger car market during the same period was characterized by rising growth; Sales increased from 3.43 thousand cars in January 2023 to 11.13 thousand cars in May 2025, and the size of the passenger car market in May 2025 increased by 131.4% compared to 4.81 thousand cars during the same period in 2024. As for the total size of the car market by type, passenger cars accounted for the largest share by 77.6%, followed by trucks by 16.5%, then Buses by 5.9%.

 

The data showed an increase in the size of the automobile market in Egypt during the period from January to May 2025, as trucks recorded the highest growth rate of 103.7%, followed by passenger cars at 97.96%, then buses at 46.58%, compared to the same period of the year. 2024.

 

Data on the relative distribution of the car market in Egypt during the period from January to May 2025 showed a clear dominance of the medium-sized car category (first category) with an engine capacity between 1.5 and 1.6 liters, which held the largest share at 44.89%. It was followed by the small/medium cars category, with an engine capacity ranging between 1.3 and 1.5 liters, with a rate of 28.49%, which reflects consumers’ preference for medium-sized cars that balance efficiency and space. Light SUVs came in third place, with a rate of 21.12%, with an engine capacity of up to 2.0 liters, which indicates an increasing demand for this type of car. Operation in the Egyptian market. On the other hand, other categories recorded low percentages, such as the small category (1.0 to 1.3 liters) by 3.85%, and the large SUV by 1.49%. While the medium (second category) and large categories recorded the lowest market share, at 0.08% for each.

 

As for car data by degree of manufacturing (completely disassembled or fully manufactured), fully disassembled cars accounted for about 57.7% of the total car market in Egypt, while the share of Completed cars: 42.3%, and this data indicates a trend towards strengthening local manufacturing and reducing the cost of importing, which would contribute to reducing car prices in the Egyptian market.

 

Given the development of the number of cars in Egypt according to the degree of manufacturing (completely disassembled or fully manufactured), the data indicates an increase in the total number of completed cars. To about 24.59 thousand cars during the period (January – May 2025), compared to 12.36 thousand cars during the same period in 2024, recording a growth of 98.95%. Completely disassembled cars also recorded an increase from 17.45 thousand cars to 33.49 thousand cars, an increase of about 91.92%.

 

The report clarified the growth opportunities and prospects for the automobile industry in Egypt, as Fitch Solutions expected in its report that the automobile production sector in Egypt will witness additional improvement during the year 2025, driven by price stability. exchange and easing restrictions imposed on import operations. It also confirmed that the strategic initiatives adopted by the government will play a pivotal role in enhancing the growth of the electric car sector to become one of the most prominent areas of expansion in the Egyptian automobile industry during the coming period.

 

As Fitch explained, The car market in Egypt enjoys strong growth opportunities supported by several strategic factors, including the country’s wide geographical area, the low rate of car ownership compared to the population, in addition to the presence of a large segment of young people, which enhances potential demand in the future. Free trade zones also contribute to the introduction of highly competitive imported models into the local market, providing wider choices for consumers. At the same time, government support directed towards the electrification of vehicle fleets offers promising opportunities for electric vehicle manufacturers. On the other hand, the recent agreement with the International Monetary Fund is likely to contribute to supporting the local economy, which will reflect positively on car sales in the medium term.

 

The report reviewed the most prominent agreements and projects to support the automobile industry, including; Agreements to manufacture and assemble cars in Egypt. The report also touched on a group of projects, including “car manufacturing and assembly projects, supporting industries feeding the car industry, and developing the electric car industry,” in addition to the state’s efforts to restart the “Al-Nasr Automotive” company.

 

The report indicated in its conclusion that the localization of the car industry in Egypt It represents a strategic opportunity to promote economic growth, technology transfer, and job creation. In light of the global transformations towards smart and sustainable mobility, it has become necessary to accelerate the pace towards building an advanced national automobile industry, supported by clear policies, effective investments, and integration with modern international trends, in a way that strengthens Egypt’s position as a regional industrial center capable of competing globally.

 

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