Automotive industry in Egypt

After experiencing many failures and success, the Egyptian Automotive industry is focusing more on assembly operations rather than manufacturing.

[2] After years of development, they came up with their own products, such as Nasr 128 GLS, which was the best-selling model at that time.

[2] In 1974, President Sadat of Egypt initiated an Open Door Economic Policy (ODEP).

In 1985, General Motors (GM) started a joint venture with Al-Mansour Automotive Company which was a local importer and car dealer in Egypt.

[3] At the beginning of the 1990s, the Egyptian government adopted the Economic Reform and Structural Adjustment Program (ERSAP),[1] which attracted many foreign companies which entered the Egyptian market to build their factories and assembly lines.

[1] There were many big companies such as Citroen, Fiat, Hyundai, Mercedes-Benz, Nissan, BMW and so on.

Nissan suspended its production in Egypt for safety reasons after anti-government protests started,[6] Toyota stopped their SUV assembly line in Egypt due to the situation,[6] many Korean companies such as Samsung, LG, and Hyundai Motors had to give up their business in Egypt due to the country-wide protests and many employees were forced to return to Korea or a different country,[6] BMW returned German nationals to Germany because of the violent demonstrations, and other automotive manufacturers like Daimler AG and General Motors had temporarily suspended operations in Egypt.

[10] It has giants like GM, BMW, Hyundai, Toyota and Nissan, which produce some of their vehicles in Egyptian factories.

There are more than 15 car assembly plants and 75 facilities in the country providing more than 75,000 job opportunities.

[11] Egypt has the capacity to produce 300,000 passenger cars, light commercial vehicles, trucks, and buses per year.

[11] However, the Egyptian pound's recent devaluation caused a negative impact for imports of cars and their parts.

[11] It is difficult for domestic producers to compete with European exporters and large-scale Asian manufacturers due to the small market.

[11] At the end, the existing assemblers will look for companies that have high sale volumes in the country.

Arab Organization for Industrialization A company which was established in 1975 by Egypt, Saudi Arabia, the UAE and Qatar and specializes in manufacturing different products, among them are cars like the Toyota Fortuner.

Mercedes Egypt Established as a wholly owned subsidiary of Daimler AG in December 1999.

Egyptian German Automotive Company An Egyptian car assembler, which was founded by former Daimler-Benz CEO and Samy Saad as a joint venture to assemble vehicles of the Mercedes-Benz brand.

[citation needed] It is located in the 6th October City assembling Mercedes Benz vehicles.

Nissan Motor Egypt [15] The Egyptian automotive market is now focusing on the customer experience and provides many opportunities for some parts.

[16] Geographical diversification model is one of the most important strategies for automobile manufacturers to stay competitive and profitable.

[16] As a country with over 100 million people, the production, which only averages less than 10,000 per year is unable to keep up with the demand.

[20] Hyundai won third place with 14.1% of total marketing sales and sold 13,613 vehicles.