Opportunities in the Automotive

Industry in Egypt
1

Overview of Vehicle Production

Components Industry

Automotive Strategy
1M2020

What Egypt has to Offer

Vehicle Assemblers in Egypt

Egyptian

100%

Companies Private

Foreign

& Public

Ownership

Joint Ventures

Passenger Cars

Commercial Vehicles

Gorica Egypt
Automotive Eng.
Co.

Rapid Growth
Vehicle Registrations
In thousands of Vehicles
15% 262
32%
42%
68%

172

228

-21%

21%250

206

121

72

Projected
Source: AMIC Reports

Auto Components Industry in Egypt

The Egyptian automotive components
production is estimated at US$ 1.3 billion:
1. US$ 900 million serving the OE local
assembly and the aftermarket for 4.1
million vehicles
Annual growth rate is 14.8%

Local 70%
2. US$400 million Exports
Over 90% of exports are destined to
Europe (OEM aftermarket)

Major Components & Customers

Electrical
Wiring
Harnesses

Tyres

Brake
Parts

Recent Developments
invested
US$ 100
million in a
wholly
owned
facility to
produce
Sunny &
Pickup
trucks

Egypt was the

first country to
assemble the
S-class outside
Germany

Sabanci with Lasheen invested

more than US$ 30 million to build
1000 coaches per annum

US$ 50 million to build 1,500

coaches

Pirelli invested US$ 65 million to increase Truck Tyre capacity by 50%

GM Egypt added state-of-the-art paint line with an investment of US$32 million.
Yr 2007 to Yr 2009 CAPEX over US$ 75 million

Egypt

Footprint
Optimization

Manufacture & export wiring harnesses from Port Said

Software engineering. Started 50 engineers. Now 250
Toyota announced that it will start assembling
the Fortuner SUV in Egypt by early 2012

Economic Reforms

Growth in GDP

Untapped Potential !!

Turkey GDP per Capita is $5,000 and

its car penetration is 70

1M2020
Vision 2020: Stimulate expansion of
automotive vehicle production to 1.0
million vehicles per annum by 2020.
Strategy based on 4 Key pillars:
Adherence to
International
(UN ECE)
homologation
Standards

Encouraging
local value
addition through
Automotive
Incentive
Scheme

Support Firm
level
competitiveness
improvement
programmes

Capitalising on the
portfolio of Free
Trade Agreements

What We Offer
Competitive wages and salaries.

Labour HOURLY Wages*:

Engineer MONTHLY Salary*:

Low skill/ manual work 0.60

Semi-skilled
0.75
Skilled
1.00

Junior Engineer 350

Senior Engineer

800

* Based on a survey conducted by EAFA/IDA on 20 auto component manufacturing

companies.

Under good management and with proper training, the work force
exhibits adherence to a good work ethic, very low absenteeism and
commitment to achieving agreed KPIs.

Competitive cost of other factors of

production.

What We Offer
Strong Government support:
o Training
o Development of companies quality
systems and competitiveness
o Export Tax Rebate
Regional Trade Agreements e.g.
COMESA, AFTA, Aghadir, Mercosur
Exemption from Turkish and European
Union customs duties for Egyptian
exports

What We Offer
Proximity to a big market in Europe
OEM: annual Vehicle Production > 20 million vehicles
Aftermarket: replacement parts for > 250 million vehicles values
at Euro 44 billion per annum

10 days shipping to UK, Scandinavia

6 days to Italy, Spain, France

Low cost of shipping to

Europe

Using the new 2010 RORO line, transit time is

reduced to 5.5 days to UK and 4.5 days to France

THANK YOU