Amman: Minister of Industry Khaled Hashem announced that the state's strategy is focused on progressing beyond mere vehicle assembly to establish a fully integrated automotive industry. This strategy involves expanding local component manufacturing, deepening industrial localization, transferring technology, and establishing a strong industrial base to meet domestic demand and boost exports.
According to State Information Service Egypt, Hashem's remarks were made during a meeting with the Presidential Advisory Council of Egyptian Scientists and Experts, led by Hani Azer. The meeting aimed to discuss executive steps for increasing local content in the automotive industry and manufacturing complete vehicle bodies in Egypt. Council representative Mohamed Saad, along with several executives and representatives from automotive and feeder industries, attended the meeting, as well as Assistant Minister of Industry for Strategic Affairs Mohamed Sami and Head of the Ministry's Automotive Industry Unit Alaa Salah El Din.
Participants examined a study prepared by the Presidential Advisory Council that aims to double vehicle production in Egypt over the next five years. The study also focuses on increasing the local manufacturing of automotive components, especially metal parts and vehicle bodies, to enhance the competitiveness of the national industry and support Egypt's transformation into a regional automotive manufacturing hub.
The meeting addressed mechanisms for creating an integrated industrial ecosystem that connects vehicle assembly plants with local supply chains capable of producing components meeting international standards. Discussions included utilizing Egyptian engineering expertise in design, mold development, industrial processes, and testing, expanding the production of new vehicle components, preparing to manufacture metal parts required for electric vehicles, and opening export markets in cooperation with parent companies.
Hashem noted that the meeting is a step toward transforming studies and ideas into implementable projects, with plans to hold such meetings regularly. A joint committee comprising representatives from the Ministry of Industry, the Presidential Advisory Council, and automotive manufacturers will be formed to establish an executive framework for the study's recommendations and monitor their implementation.
The minister highlighted ongoing efforts to attract specialized casting companies to invest in Egypt, recognizing the sector's importance as a key supporting industry for deepening local manufacturing in heavy and engineering industries, particularly automotive production. These efforts include technology transfer and localization, rehabilitation of existing factories, and the establishment of integrated production facilities to reduce imports and enhance the competitiveness of Egyptian products under the National Automotive Industry Development Program.
Hashem also mentioned coordination with the Ministry of Finance to launch a vehicle replacement program for aging cars, which will include incentives to encourage citizens to replace old vehicles with newer, more efficient models. This initiative aims to increase demand for locally manufactured vehicles and provide scrap materials for reuse in domestic industries.
The ministry prioritizes the scrappage system and resource utilization to support the iron and steel industry through greater reliance on locally sourced scrap, reducing import costs and supporting national industries. Representatives of automotive and feeder industries expressed their readiness to expand local production of vehicle body structures, provided that the necessary raw materials and qualified technical personnel are available, which would further strengthen the confidence of parent companies in the capabilities of Egyptian industry.