China’s Geely Auto has opened its first car assembly plant in the Middle East and North Africa near the Egyptian capital to produce 10,000 vehicles per year for the domestic market and up to 30,000 for export.
Cairo-based Auto Mobility company (Geely Egypt), said it has invested around $100 million in the new car assembly plant in Sixth of October City which was inaugurated on Wednesday.
The plant will produce the Emgrand 2025 sedan and the Coolray 2025 sports utility vehicle, according to Song Jim, chairman of Geely Global Automobile.
The Egyptian government has announced support for the growth of local manufacturers of automobile parts at a cost of $1.4 billion and has signed agreements with three global manufacturers to deliver an average of 60,000 to 70,000 cars per year, according to reports.
The three companies – Nissan, General Motors and French Stellantis Group – were to invest over $145 million from 2023.
Egyptians bought 78,000 vehicles in the first 10 months of last year, according to the local Automotive Market Information Council, cited in local media.
Fahd Al-Ghanim, chairman of Auto Mobility, said that the factory includes two production lines for Geely vehicles with a total capacity of up to 10,000 vehicles annually.
It is expected to meet domestic demand and facilitate the export of approximately 30,000 vehicles from Egypt.
“Today Auto Mobility makes a big step for the manufacturing of Geely cars in Egypt. This reflects Geely’s commitment to expand in a strategic market like Egypt,” Al-Ghanim was quoted as saying by Alahram newspaper.
He said the project would support the government’s strategy to turn Egypt into a hub for the export of cars to other markets.
“This will no doubt contribute to supporting the domestic economy and creating jobs for Egyptians,” he said.
Auto Mobility has invested about $250 million in Egypt since it was created in 2023 from the merger of Egyptian, Kuwaiti and Saudi companies.
According to Othman Abdul Monem, managing director of Auto Mobility, local components account for just under 50 percent of the Geely car production in Egypt. The intention is that that proportion should increase.
He said Auto Mobility expects to take delivery of the first assembled Geely vehicles by the end of February but he did not mention how many cars would be delivered.
Jim said that the first batch of Emgrand and Coolray vehicles will be produced in Egypt based on the BMA (B-segment Modular Architecture) platform developed by Geely.
He said Geely has established 40 sales and service centres across Egypt, offering a wide range of vehicles, from A-class sedans to D-class SUVs.
“This plant is particularly significant for Geely and the Egyptian automotive industry as it is Geely’s first CKD (Completely Knocked Down) factory in Africa and the Middle East,” he said.