SNG: Egypt allocates $30mln to accelerate automotive industry in FY2025

About this update from Sumitomo Chemical India Ltd.

First published: 07-Jul-2025 10:11:04Staff WriterEgypt has allocated EGP 1.5bn in its 2024/2025 state budget to advance the localisation of its automotive industry, a strategic move underscored by the inauguration of Sumitomo’s largest global factory for automotive wiring harnesses in 10th of Ramadan City.The Japanese manufacturer’s new facility is expected to create around 10,000 jobs and serve as a key export hub for major European carmakers. Its opening reflects Egypt’s broader efforts to deepen local manufacturing, reduce dependence on imports, and position itself as a regional leader in vehicle production and innovation.The government’s push to grow the automotive sector is part of its wider economic development strategy aimed at enhancing the investment climate and achieving industrial self-sufficiency. International confidence in this direction is growing. Fitch Solutions projects an uptick in Egypt’s vehicle production in 2025, supported by expected exchange rate stabilisation and the easing of import restrictions. Meanwhile, the International Energy Agency has praised Egypt’s progress in expanding production lines for electric vehicles and batteries—developments that are enabling more exports to the EU and encouraging local EV adoption.The EGP 1.5bn allocation supports the National Strategy for the Localization of the Automotive Industry, originally launched in 2022. As of mid-2025, seven companies have joined the initiative, with three having already submitted invoices. An updated version of the strategy was approved in May and is set to take effect in July 2025.This strategy is complemented by other major national initiatives, including the activation of the Automotive Industry Development Program (AIDP), which offers incentives to boost local value-added production. Egypt has also established the Supreme Council for the Automotive Industry and launched the Eco-Friendly Automotive Industry Financing Fund, under Law No. 162 of 2022, to further support sector growth.Workforce development is also underway. In December 2024, the first batch of graduates completed the “Android Automotive” programme—an initiative focused on building Egypt’s capabilities in automotive software and smart vehicle technologies.In terms of electric mobility, Egypt recently signed a contract to launch a joint stock company for the production of the country’s first electric...

View stock analysis, news, and events for Sumitomo Chemical India Ltd.