Egypt signs $135M MG car manufacturing agreements to boost Local production and export potential

CAIRO – 29 December 2024: Egypt has signed two major agreements to establish an MG car manufacturing facility with an investment of $135 million. The agreements include a technical licensing deal between Al Mansour Automotive Group and China’s SAIC Motor Corporation to locally produce MG-branded cars, as well as a land allocation contract for the factory in New October City’s industrial zone.

 

The technical licensing agreement was signed by Ankush Arora, CEO of MAC for Vehicle Manufacturing, a subsidiary of Al Mansour Automotive Group, and Emin Zao, Vice President of SAIC Motor. The land allocation contract was signed by Eng. Sayed Metwally, Head of the General Authority for Land Ports and Dry Ports, and Ankush Arora. The new factory will cover 126,000 square meters in New October City and is set to begin operations in Q2 2026. It will initially produce 50,000 units annually, with plans to double that to 100,000 in the second phase. The factory aims for a local component ratio of over 45%.

 

The project supports Egypt’s strategy to localize the automotive industry and boost export potential. It will create over 10,000 direct and indirect jobs and serve as a hub for training local talent. The factory will feature modern facilities for body assembly, painting, and general assembly.

 

Kamel El-Wazir, Deputy Prime Minister for Industrial Development, highlighted Egypt’s growing role as a regional industrial hub, noting the strategic location and skilled workforce. Mohamed Mansour, Chairman of Al Mansour Automotive Group, said the investment would enhance the industry’s competitiveness and bring cutting-edge technology to Egypt. 

 

Since acquiring exclusive distribution rights for MG cars in 2018, Al Mansour Automotive Group has helped MG become a market leader in Egypt. This new manufacturing facility marks a significant step in localizing production and expanding Egypt’s presence in the global automotive market. The agreements reaffirm Egypt’s commitment to economic growth, reducing the trade deficit, and creating high-value job opportunities.