Egypt is seeking to increase the use of locally produced steel in its automotive industry as part of wider plans to deepen vehicle manufacturing and reduce dependence on imported components, according to local media reports. Industry Minister Khaled Hashem discussed proposals to expand the domestic supply of steel sheets for additional vehicle models assembled in Egypt during a meeting with the Presidential Advisory Council of Egyptian Scientists, automotive manufacturers and component suppliers.
The discussions formed part of a wider automotive development plan aimed at doubling vehicle production over the next five years while increasing localization of components, particularly metal parts and vehicle bodies. The government aims to move beyond vehicle assembly by developing domestic capabilities to manufacture vehicle bodies and other metal components entirely in Egypt.
Automotive manufacturers also indicated their readiness to expand local production of metal vehicle structures, provided sufficient raw materials and skilled labour are available. The plans also include developing lightweight materials and preparing domestic manufacturers to produce metal components required for electric vehicles, while increasing exports of locally manufactured automotive components to regional markets.
Separately, the Ministry of Industry is coordinating with the Ministry of Finance on a national vehicle scrappage and replacement programme. The scheme is expected to encourage replacement of older vehicles while generating additional ferrous scrap for domestic steel production.
Hashem said increasing the use of locally available scrap has become a strategic priority for Egypt as the country seeks to reduce scrap imports and secure raw material supplies for its iron and steel industry. The ministry also plans to attract investment from specialized foundry companies to support localization in heavy and engineering industries, including the automotive sector.