Egypt is preparing a package of incentives aimed at creating a sophisticated auto industry during the coming period through attracting many international auto companies to establish new investments in the Egyptian market, Minister of Trade and Industry Mounir Fakhry Abdel Nour said.
These stimulants are prepared in coordination with the industrial community, the Chamber of Automotive Industry and Export Council in order to reach a comprehensive strategy for this industry.
Abdel Nour said during his visit Thursday to General Motors that the automotive industry in Egypt is currently based only on assembling auto parts with a few exceptions, which are made locally, such as tires, batteries and windows.
Egypt has great experience in this field through 16 companies who gather auto parts for global brands. The local component in cars reached more than 60 percent, including the transport vehicles produced by General Motor Co., he added.
The minister also said that the growth rates of the automotive industry in Egypt are witnessing a boom as auto sales by the end of 2014 are expected to reach 295,000 cars compared to 260,000 cars in 2010.
"GM acquires 24 percent of the total size of the domestic market. It plans to sell up to 61,000 cars by the end of 2014 compared to 52,000 cars sold in 2010, which shows that the market is witnessing a boom," said Abdel Nour.
Mario Spangenberg, head of GM's board of Africa, said that the company has an ambitious strategy aimed at sustaining growth and leadership on the Egyptian market by capitalizing on more opportunities.
Tareq Atta, Managing Director of General Motors in Egypt and North Africa, said that in 2013, the customs and tax value the company supplied to the Egyptian treasury reached about LE780 million. It is expected to reach one billion by the end of 2014, he added.
