Minister of Industry Khaled Hashem discussed with a delegation from Mercedes-Benz Egypt, led by CEO Thomas Waggershauser, plans to expand automotive manufacturing in Egypt, increase local production and explore exports to neighboring markets as part of the state's strategy to deepen local manufacturing and position Egypt as a regional automotive hub.
During the meeting, Hashem said the government has introduced a package of incentives to support the National Automotive Industry Development Program, aimed at attracting global manufacturers capable of producing at least 100,000 vehicles annually, while expanding the local supplier base to strengthen domestic value chains, attract further investment, increase electric vehicle production and boost exports of Egyptian-made vehicles to regional markets.
The minister said the program offers cash incentives linked to higher local content and value added, in addition to investment, environmental and tax incentives, as well as export incentives designed to enhance the competitiveness of Egypt's automotive industry.
The meeting reviewed Mercedes-Benz Egypt's current manufacturing operations, with the company's plant in 6th of October City producing around 5,000 vehicles annually and achieving a local content ratio of 45 percent. Hashem said Mercedes-Benz enjoys a long-standing presence in the Egyptian market and urged the company to build on its position by expanding production, increasing local content and value added, and developing its local supplier network to further deepen domestic manufacturing and strengthen supply chains.
For his part, Waggershauser reaffirmed the company's commitment to expanding its operations in Egypt in the coming period and strengthening its dealer network, describing the Egyptian market as one of the company's most strategic markets in the region.