Automotive industry in Egypt - statistics & facts
In 2023, Egypt emerged as the eighth-largest car exporter in Africa, trailing Namibia and Ghana. As the country seeks to modernize and diversify its economy, its automotive industry is evolving to meet both domestic demands and global trends, particularly in vehicle manufacturing and electric mobility. While the country is gradually adapting its infrastructure to support electric vehicles, it is also expanding its vehicle production capacity across various regions. So, what are the key challenges facing the industry, and who are the leading players in the market?
Due to its strategic location at the crossroads of Africa, the Middle East, and Europe, Egypt is poised to become one of the leading producers and exporters of electric vehicles in the region, attracting substantial partnerships. However, droughts in the region pose a potential threat to the country’s water supply, which could hinder large-scale EV production, particularly in water-intensive processes like battery manufacturing. To fully unlock its automotive potential, Egypt must address these environmental challenges and ensure sustainable resource management.
Market overview and market leaders
By the end of 2023, Egypt's motor vehicle sales reached 86,044 units, a significant decline from nearly 278,000 vehicles sold in 2021. Among the vehicles sold in 2023, approximately 17,000 were commercial, positioning Egypt as the third-largest seller of commercial cars in the MENA region, following Saudi Arabia and the UAE. Nissan, a long-established player in Egypt’s automotive sector, led car sales in September 2024, holding a market share of nearly 16% as of the first quarter of the same year. However, Subaru has been gaining traction among Egyptian consumers, with a remarkable annual growth rate of presented in 2023. Cars exported from Egypt experienced a peak in 2013, however, this was short-lived, with exports falling to just six million U.S. dollars in 2023. This can be explained by the numerous challenges the industry encountered like political instability, currency devaluation, and global economic factors, all contributing to a decline in export volumes. Despite these setbacks, the automotive industry continues to play a crucial role in Egypt’s industrial sector, especially with the opportunities that lie ahead in electric mobility and green technology.Is Egypt ready for electric mobility?
Battery electric vehicles (BEVs) and plug-in hybrids are slowly garnering popularity among Egyptian consumers, with German brands like Volkswagen and Mercedes leading the charge. As with any shift toward electric mobility, infrastructure is key, and Egypt ranks second in Africa for road quality, according to a recent survey. To further support this transition, the country has already established more than 200 charging stations nationwide, with plans to increase this number annually. As more consumers embrace electric vehicles, Egyptian automaker El Nasr is preparing to produce the country’s first domestically manufactured electric buses in 2025. Additionally, Egypt is working on several projects in collaboration with international companies to bolster its electric vehicle production, including a partnership between China’s BAIC Group and local Alkan Auto to begin manufacturing electric cars next year.Due to its strategic location at the crossroads of Africa, the Middle East, and Europe, Egypt is poised to become one of the leading producers and exporters of electric vehicles in the region, attracting substantial partnerships. However, droughts in the region pose a potential threat to the country’s water supply, which could hinder large-scale EV production, particularly in water-intensive processes like battery manufacturing. To fully unlock its automotive potential, Egypt must address these environmental challenges and ensure sustainable resource management.
