Egypt’s Nasr Automotive Manufacturing Company, of the Ministry of Public Enterprise, signed two agreements with China's Dongfeng Motor Corporation to reconstruct its factory to produce the first electric car in Egypt.
Egypt’s Public Enterprise Minister Hisham Tawfik and the Chinese Ambassador to Cairo Liao Liqiang attended the online ceremony, which also included top officials from Nasr and Dongfeng.
Speaking at the ceremony, Tawfiq stressed that the agreements mark the launch of Nasr towards the project of localizing the electric car industry in Egypt.
Earlier, President Abdel Fattah el-Sisi issued directives to relevant authorities on localizing and using national capabilities to manufacture electric vehicles.
Tawfik explained that the project aims to preserve the environment by reducing dependence on fossil fuels and thermal emissions that have negative impacts on people and the economy.
He explained that the agreements included a framework agreement for the production of the electric car in Nasr factories in cooperation with Dongfeng.
Dongfeng is one of the four largest car manufacturers in China that produces about 3.5 million cars annually with its main partners in the auto industry worldwide, he mentioned.
The two companies also signed an agreement to renew the Nasr factory with the latest technologies and production methods.
The project comes within the framework of the automobile manufacturing strategy adopted by the political leadership, which takes into account all the associated factors, according to the Minister.
Tawfik indicated that all relevant authorities and ministries are cooperating to ensure the success of this strategic project.
They will deploy fast chargers in the streets and parking lots all over the country and prepare electricity networks to accommodate the expected increase in consumption.
The authorities will also launch the necessary support policies which help encourage consumers to shift to new methods of transportation.
He pointed out that the ministry relied on technical and commercial studies which led to choosing China’s Dongfeng, as well as the “E70” model.
E70 electric vehicles will be used to reduce emissions and ensure successful sustainability while keeping pace with the increasing global trend of electric transport.
In light of the President’s directives, Nasr Company will start its production of electric cars at a localization rate of 50 percent. At a later stage, the plan will include a research and development center, with the participation of national cadres and specialized Egyptian companies.
An agreement is currently underway to establish a research and development center with Dongfeng and Egyptآ's Brightskies Technologies company.
The Minister also reported that the project aims to produce 25,000 cars annually in one shift, and according to market studies, the volume of demand is expected to increase with the anticipated governmental support and incentives to double this amount.