BAIC and Alkan Auto: Electric Vehicle Manufacturing Plant in Egypt
BAIC, the Chinese automotive company, has signed an agreement with Alkan Auto, a subsidiary of the Egyptian International Automotive Group, to establish a manufacturing plant for electric vehicles in Egypt. The goal of this factory is to meet the needs of the local market while also exporting to markets in the Middle East and Africa. Production is expected to commence by the end of 2025.
The new factory will cover an area of 120,000 square meters and is projected to produce approximately 20,000 vehicles in its first year. After five years, annual production is expected to reach 50,000 vehicles. Initially, the local component ratio in the produced vehicles will be 48%, with a target increase to 58%. The factory is also expected to create around 1,200 new job opportunities.
The agreement was signed by Zhao Bingfei, Vice President of BAIC, and Khaled Nasir, Chairman of Alkan Auto, in the presence of Kamel al-Wazir, Deputy Prime Minister and Minister of Industry and Transport, Song Wei, President of BAIC, Tahr Lashin, Executive Director of the Egyptian International Automotive Group, and Ahmed Al-Khadem, General Manager of the Kia and BAIC brands, along with several leaders from the Ministry of Industry.
During his speech, the minister stated that this project aligns with the directives of President Abdel Fattah al-Sisi, aiming to transform Egypt into a regional industrial hub. The objective is to localize the automotive industry and enhance supporting industries while also bolstering the role of the private sector in this field. The minister also expressed his support for the fruitful cooperation between the two companies and emphasized the ministry's commitment to facilitating the project's entry into production as quickly as possible. The General Authority for Industrial Development has allocated the necessary land for the factory, and the ministry is prepared to complete all industrial licensing procedures.
The minister added that the ministry is working to deepen local manufacturing and attract global investments, particularly in the automotive sector and its supporting industries. Furthermore, the ministry supports global companies looking to produce and expand within the Egyptian market, which helps create job opportunities for youth and increase investments.
For his part, Song Wei, President of BAIC, affirmed that the company is keen to strengthen its presence in the Egyptian market, considering it one of the important markets in the region. He added that BAIC has been operating in China since 1958 and has begun producing electric vehicles in recent years. The company continuously invests in research and development to produce high-quality vehicles, both in China and in international markets.
