Egypt teams up with Chinese auto giant in EV push

An Egyptian company is collaborating with China’s second-largest state-owned automaker to produce affordable electric cars in the Middle East's most populous nation. 

According to Bloomberg, GV Investments' subsidiary will start local production of China FAW Group's cheapest model in early 2025. The company is planning on making them primarily for ride-hailing services Sherif Hamouda, chairman of the Cairo-based firm, told Bloomberg. 

Production will scale up over the next three to five years, aiming for 65% locally sourced components for exports to the Middle East, Africa, Europe, and Latin America. Up to $20 million will be invested in industrial facilities.

Egypt, with its population of about 105 million, reportedly has just a few thousand battery-powered cars. The country, recovering from an economic crisis and foreign-currency shortage, seeks to boost local industry and become a manufacturing and export hub. State-owned El Nasr Automotive and Al-Mansour Automotive have similar EV ambitions.

GV Auto plans to introduce the Bestune E05, one of the world’s lowest-priced EVs, commonly used for taxis. Hamouda emphasized the need for more government incentives and EV charging stations to promote the adoption of electric vehicles.