Auto manufacturing remains an unattainable dream for many Arab countries due to lack of its production components and supplies within the industries in these countries, most these components if imported will reflect a huge added cost to production, which can make the value of manufactured cars more expensive than imported ones.
Egypt was among the leading Arab countries in automobile industry, as it has opened Al-Nasr Automotive Company, which was established in 1960 merely to assemble car parts at the beginning yet it managed to manufacture the first Egyptian car “Ramses”. The government supported domestic auto manufacturing back then as it has allocated EGP 2000 to Al-Nasr car production.
After the Consumer Protection Agency has dismissed rumours that a car called, “Nano Egypt” is being sold at a cost of only EGP 25,000, these rumours have renewed hope that car production can be brought back to Egypt following official liquidation of Al-Nasr Auto Company in 2009. MPs’ views on how Arab Organisation for Industrialization (AOI) or Al-Nasr Auto Company can help bring car production back to Egypt The MP Mohamed Al-Zeini, the Under-Secretary of Parliament’s Committee on Industry, commented on “Nano Egypt” rumours, “I have never heard of this car and we will support the AOI in restructuring of the auto industry so that we can begin producing cars”.
Al-Zeini added in statements to parlmany website, “Egypt’s auto industry needs to be re-examined and a specific strategy must be developed. Egypt already has factories that assembles car parts and the AOI produces jeeps; however, we aspire to bring car production back to Egypt and studies have already been made in this regard”.
Al-Zeini continued, “Car production is considered as a supplementary industry and the committee will support all successful proposals targeting the automotive industry in Egypt as it will greatly support the economy and provide foreign currency into the economy”.
The MP Mohamed Zakaria, a member of the Parliament’s Committee on Industry, commented on the same circulated rumours, “If the Consumer Protection Agency dismissed rumours, they, were merely false rumours”.
Zakaria added in a statement, “Egypt has not yet produced a 100% Egyptian car and we can hold a comprehensive dialogue among the Parliament’s Committee on Industry, the Ministry of Industry and the Industrial Modernization Centre (IMC) in order to discuss requirements of the auto industry in collabouration with the Industrial Arab Organisation, noting that we will become a car manufacturer gradually”.
He continued, “Egypt can produce cars if the Ministry of Industry managed to develop an integrated and systematic car production plan and submit it to the parliament for consideration. We can also explore ways to meet requirements needed to domestically manufacture components and promote related industries in Egypt”.
Ezzat Al-Mahalawi, a member of the Parliament’s Committee on Industry, said, false rumours (referring to “Nano Egypt”) are a warning sign that we must bring the auto industry back to Egypt in order to support the Egyptian economy once again”.
Al-Mahalawi added that he would talk about “Nano Egypt” rumours as well as the AOI’s car production in Egypt at the committee’s meeting, noting that we must make a progress in Egypt’s auto industry.
He continued that he would contact the Arab Organisation for Industrialization and would strive to study cheaper manufactured cars and try to meet requirements for Egypt’s auto industry in order to encourage the Egyptian industries.
It is to be noted that the market for an Egyptian Vehicle is outstanding in light of the Egyptian population and surrounding markets. The question is who is bold enough to take a leap of faith into producing a 100% Egyptian car at a reasonable price, returns on such an investment is outstanding?
