Egypt to produce electric cars beginning 2021 at LE300K consumer price

CAIRO – 29 June 2020: Minister of Public Enterprise Hisham Tawfik stated in a phone-in Sunday that Egypt will produce 25,000 electric cars annually starting 2021, and that the vehicle will cost the consumer LE 300,000.

The car will be produced by El Nasr Automotive Manufacturing Co. which will re-operate after 11 years of closure. Over 40 years, the company produced 384,000 cars.

The factory purchased in 2008 new machinery that has been preserved because of periodic maintenance so it is in good shape to manufacture electric cars.

The vehicle is originally Japanese, and can be driven for 400 kilometers per charge. The charge saves LE 8,000 per 10,000 kilometers.

The minister expressed hope that half the production is purchased by taxi drivers given that the electric vehicle requires less maintenance than regular ones.

Tawfik said that the brand was selected in September, and that two months later the Chinese team visited Egypt to prepare for the project which came to a halt because of COVID-19 global outbreak.

However, three weeks ago the cooperation protocols were signed, and within the next three months, feasibility and detailed studies will be finished. By the end 2021, the car will be available for consumers.

The following are steps taken by the government to promote electric vehicles in Egypt:

1. A study is being prepared on electric charging, and the suitable places for building charging stations before the launch of electric cars.

2. The Ministry of Electricity will establish 1,000 fast charging stations annually with a capacity of 50 kilowatts for a period of at least 3 years.

3. The need of taxi vehicles for slow charging stations will be considered, with a package of incentives for the production of electric cars.

4. Incentives will be offered, including the launch of a program to replace taxis with 11,000 electric taxis.

5. Among these incentives is the obligation of government agencies to replace 5 percent of the fleet of cars annually (7,000 cars).

6. The government will provide investors with subsidies for the first 100,000 locally manufactured electric car worth LE 50,000 per car.

Additional reporting by Hanan Mohamed