| Economy – Automotive |
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Egypt is the largest producer of cars in North Africa with
production capacity standing at 180 thousands units per year.
Egypt offers new tariff structures on automotive components and spare parts;
between 7-10% down from 23-33%; and tariffs on trucks down to 12-32%
Assembly in the passenger car represents the largest component in Egypt's
vehicle assembly production, accounting for 77.5% of total production in 2006.
There are 26 assembly lines in Egypt (passenger cars:11, Buses:6, CVs&
LCVs:9).
Egypt has attracted production facilities from the world’s largest auto
manufacturers including Mercedes, BMW, Peugeot, Suzuki, Hyundai, Nissan,
Daewoo, Citroen, Chrysler, Opel and Kia.
The Egyptian Automotive components production is estimated at US$ 530 million:
- US$ 370 million serving the Original Equipment (OE) local assembly and the
aftermarket for 3.2 million vehicles with annual growth rate of 4.8%
- Export of auto components is estimated at US$160 million with over 90% of
exports destined to the EU.
Egypt has a wide local supplier base for car manufacturers (such as wire,
harness, leather, textile, glass)
Large labor pool and competitive labor cost attract investors in this sector.
An Automotive Parts Industrial park of 2 million square meters is located in
the city of 6th October. |