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Monday, February 16, 2026
Monday, February 16, 2026

Egypt Strengthens Its Position as a Regional Automotive Hub

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Egypt is accelerating efforts to position itself as a regional hub for automotive manufacturing and exports, following high-level talks between the Ministry of Industry and representatives of Nissan on expanding production and boosting shipments to African markets.

The meeting, chaired by Industry Minister Khaled Hashem and attended by senior ministry officials and economic experts, focused on the company’s plans to increase production capacity, strengthen workforce skills through industrial training partnerships, and deepen local supply chains to raise the domestic component ratio in vehicle manufacturing.

Opening the discussions, the minister stressed that the automotive sector sits at the heart of Egypt’s industrial strategy, citing the country’s competitive advantages — including its strategic location linking three continents, a network of free-trade agreements, and expanding industrial and logistics infrastructure. These factors, he said, reinforce Egypt’s prospects of becoming a manufacturing and export gateway for regional markets.

He added that the government is pushing to localize vehicle production and supporting industries in order to reduce import bills and expand domestic manufacturing depth. While recent months have seen growth in component factories and rising investment flows, he noted that widening the supplier base remains essential to increase the local content share.

For his part, Mohamed Abdel-Samad, the company’s Managing Director for Africa, reaffirmed Nissan’s commitment to expanding operations in Egypt. He revealed that the automaker exported around 25,000 vehicles to African markets over the past three years, while production reached approximately 30,000 passenger cars during the current fiscal year, placing the company at the top of the local market.

Abdel-Samad also announced plans to launch a new production line expected to add 10,000 vehicles annually in its first phase, with local content exceeding 50 percent. He invited the industry minister to visit the factory soon to review the latest expansion works.

Industry observers say the move reflects intensifying competition among global automakers to strengthen their presence in Egypt, capitalizing on the government’s export-driven industrial approach and the rapid expansion of African automotive demand—one of the fastest-growing vehicle markets worldwide.

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