Alkan Auto, a key player under the Egyptian International Automotive Group’s umbrella, has officially inked a deal with China’s automotive giant BAIC to establish an electric vehicle (EV) manufacturing plant in Egypt. This strategic partnership marks a significant step towards Egypt’s ambitious vision of transforming Egypt into a regional industrial powerhouse.
The state-of-the-art facility, projected to open its doors by the end of 2025, will cover an extensive 120,000 square meters. This plant is set to serve not only the burgeoning demand in the domestic market but also facilitate exports across the broader Middle East and African regions. With a focus on sustainability and innovation, the first year of operations is expected to yield 20,000 vehicles, with a projected increase to 50,000 vehicles annually by the fifth year.
In line with Egypt’s broader goals of boosting local industry, the project promises to create approximately 1,200 jobs, significantly contributing to employment and skill development in the region. Furthermore, the venture pledges to localize 48% of its components initially, aiming to escalate this figure to 58% over time. This move is set to empower the local supply chain and reduce dependency on imports.
As global attention increasingly shifts towards eco-friendly alternatives, Egypt’s proactive approach in embracing electric mobility could position it at the forefront of the green revolution within the automotive sector. The collaboration with BAIC not only brings cutting-edge technology and expertise but also underscores Egypt’s commitment to environmental sustainability.
Industry experts are optimistic that this initiative will act as a catalyst for further investments in the region’s automotive industry, potentially attracting a host of subsidiary industries and fostering an ecosystem conducive to innovation and growth. As the countdown to 2025 begins, all eyes will be on Egypt to see how this ambitious project unfolds and reshapes the regional market dynamics.
