Egypt's Cabinet has approved a new automotive production incentive programme under the National Automotive Industry Development Strategy, aiming to deepen local manufacturing, reduce imports, and boost exports. The programme sets a target of raising local value-added components to 60 per cent and increasing local content in car manufacturing to over 35 per cent. It also aims to reach an annual output of 100,000 vehicles and offers special incentives for environmentally friendly cars, including electric and hybrid models. The new programme seeks to establish a strong and competitive base for vehicle production and feeder industries. It also aims to attract foreign direct investment by leveraging Egypt's industrial capacity and trade agreements. Additionally, it encourages the development of manufacturing facilities in underdeveloped areas to support regional growth. Export-oriented firms will benefit from additional incentives to drive outbound trade and increase foreign currency inflows. Extra advantages are also available to companies that exceed the programme's performance criteria. The initiative aligns with President Abdel Fattah El-Sisi's directives to strengthen Egypt's automotive sector and position the country as a regional manufacturing hub. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
