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Raya begins light transport vehicles assembly in partnership with Italian Piaggio with EGP 100m investments We aim to increase percentage of local components to 40% within two years, export to Africa
Raya Holding has begun the assembly of light transport vehicles in cooperation with the Italian company Piaggio, a project with investments worth EGP 100m. Medhat Khalil, chairperson at Raya Holding, said in a press conference, that his company pays great attention to light transport vehicles, including motorcycles and vehicles with two-tonne loads, especially with the strong growth opportunities in Egypt and Africa, allowing generating jobs for young people, and in line with the government's goal to create more jobs. Khalil told Daily News Egypt that the volume of production in the first phase will be 30,000 units annually, aimed to increase within two years to 200,000. "We plan to export to Nigeria, Uganda, and Sudan," Khalil said. He added that the volume of investments during the first phase is estimated to be EGP 100m. Piaggio is the largest in the world in this industry, and it is the top manufacturer of motorcycles and tuk-tuks. "We have a factory in Sixth of October, located on an area of 10,000 sqm. This factory will carry out the assembling process, and within two years, we will deepen Egyptian industry to take the percentage of local components to 40%, and afterwards, exportation to various African markets will begin," Khalil added. For his part, Sergio Rubino, vice chairperson at Piaggio, said that the history of the company goes back 130 years in the field of manufacturing light transportation vehicles, thus, the company has enough experience to be part of new experiences in the Egyptian and African market. "Currently, we have over 170,000 employees, and we believe that the Egyptian market is promising and has many investment opportunities available. About one million Egyptians use light transportations to commute every day," Rubino said. Hazem Moghazy, managing director at Aman Financial Services, an affiliate of Raya Holding, said that Raya will be offering various financing programmes to facilitate the purchasing of light vehicles manufactured by Raya. He said that his company currently has 130 branches, aimed to increase to 200 by the end of the year. "We have over 20,000 outlets that we aim to increase to 35,000 by the end of this year. We will also be launching several financing programmes that suit young people, which may be weekly or daily," he added.
