GLOBAL PERSPECTIVE
The world is at an environmental crucible with harmful carbon emissions in the last ten years achieving their highest level in human history. This has put climate change at the forefront of global priorities, with governments, industries and local communities joining forces to reduce fossil fuel use, increase the use of alternative fuels, extend access to electricity, and improve energy efficiency.
Therefore, it is no surprise that the automotive industry has emerged as a key stakeholder in achieving these goals, given the major impact it has on the environment. Re-inventing mobility is not a luxury but a must to reduce carbon emissions and global warming.
This has been reflected in the dramatic disruption taking place in the automotive industry in the last decade, led by stricter regulations aimed at reducing CO2 emissions by 55% before 2030, technology advancements, and unprecedented investments in sustained mobility.
The result was an increased adoption of electric vehicles across the globe, emerging as the preferred clean technology for the future of mobility.
And just to give you a sense of where the market is heading:
• From 2010 to 2020, the number of electric vehicles globally grew from 17,000 to 10 million.
• In 2021, 7 million more EVs were sold, accounting for 10% of global car sales in that year and 40% of the total volume of EVs sold during the last ten years.
• The number of EVs is expected to reach 145 million globally by 2030, growing 6 times faster than the global automotive market.
• Out of the world’s top 20 vehicle manufacturers, 18 plan to scale up their EV production.
• 300$ billion dollars were invested globally to develop EVs in the last ten years and another 515$ billion dollars in investments are planned through 2030.
On another hand, the cost of operations of EVs for consumers is expected to be 40% less than that of our regular internal combustion vehicles.
EGYPT PERSPECTIVE
The automotive industry in Egypt is witnessing a much-needed boost thanks to the government’s efforts to create a true dialogue with key market players, improve the business environment, establish a strong local manufacturing base and help the industry shift towards sustainability in line with global practices and the wellbeing of its citizens.
Shifting the automotive industry in Egypt to electric vehicles could be a major contributor to Egypt’s National Strategy for Sustainable Development that aims to achieve a 50% reduction in pollution and 42% share for renewables in its energy mix.
With almost 25% of our CO2 emissions being attributed to transportation, using environmentally sustainable mobility will considerably improve air quality and reduce solid particle pollution.
A typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year and there are on average 300,000 new cars sold in Egypt annually. If we achieve one out of every ten cars to be electric over the next decade, we could save 1.4 million tons of CO2 emissions. We could also save USD 45 million / year in healthcare expenses for every 1000 electric buses that we deploy, according to a previous study by the International Finance Corporation.
Today Egypt has five main factors that will facilitate achieving its sustainability goals and establish a strong EV market:
1. A young population with a bigger appetite to take the lead in adopting new technologies.
2. An affordable alternative in the mid to long-run to reduce our dependence on fossil fuel.
3. With the growth being witnessed in infrastructure and the creation of new cities, the ability to set new policy and organization goals and the commitment to international standards in urbanization.
4. The proximity and trade relations with Europe and Africa, maximizing the potential of our location and our existing free trade agreements to make Egypt a center of excellence for EVs in the region.
5. The government’s dedication to localize the manufacturing of EVs in Egypt, strengthen the charging infrastructure in the next three years by building 1000 local charging stations, regulate charging fees, decrease taxes, and facilitate licensing.
MANSOUR PERSPECTIVE
Al Mansour Automotive Group has been a leader of the Egyptian Automotive industry for the last 47 years, and today, it is laying the foundation to maintain its market leadership in the new paradigm shift taking place in the automotive industry, by focusing on innovation and sustainability, and actively taking part in the transition to EVs in Egypt.
Mansour Automotive sustainability strategy is centered on four key objectives:
• Become the EV market leader in Egypt.
• Locally assemble EVs.
• Support mobility solutions developed by Egyptian startups and innovators.
• Support renewable energy and set up EV charging infrastructure through its group company Infinity.
Our strong belief in the future of clean energy and sustained mobility is what motivated us to be part of the presidential automobile conversion program, to work closely with the government on developing Egypt’s Automotive Industry Development (AIDP) Strategy with a focus on EV localization and adoption, and to be the exclusive mobility principal partner for the Climate Change Conference COP27 which will be held in Sharm El-Sheikh in November 2022
CONCLUSION
Egypt is a promising market with numerous investment opportunities especially in the mobility sector. Moving to electric is vital, especially in light of the government’s efforts to reduce the burden on citizens, attract further foreign investments, strengthen local manufacturing capabilities, create jobs, and raise Egypt’s innovation profile.
This is an exciting time, witnessed only once a century and we are lucky to be part of it. There are countless opportunities to be seized and a lot of impact to be made, and we look forward to you becoming part of our journey!
Stay tuned for more exciting announcements during COP27!
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