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VW eyes Egypt car manufacturing hub status

Businessmen Team news 03 December 2025 12:50 PM
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VW eyes Egypt car manufacturing hub status

Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Engineer Kamel Al-Wazir, held a videoconference with Thomas Schäfer, CEO of the German Volkswagen (VW) Group, to discuss the group’s plan for car manufacturing in Egypt in the coming phase.

The meeting focused on VW’s vision for expansion in the Egyptian market, outlining a multi-stage industrial plan. This plan starts with contract manufacturing at the Egyptian German Automotive (EGA) plant, culminating in the establishment of a fully integrated vehicle assembly factory in the East Port Said industrial zone.

The proposed roadmap from VW also highlighted localizing the manufacturing of auto components, improving and upgrading the capabilities of local suppliers, establishing a Research and Development (R&D) centre focused on localizing technology and knowledge transfer, and creating a technical training centre to qualify personnel for the maintenance and repair of electric vehicles.

Minister Al-Wazir welcomed the cooperation, stressing Egypt's commitment to providing a stable and stimulating investment environment and offering full support to overcome any challenges. He underscored that the project would boost the industrial sector’s competitiveness, enhance local manufacturing capacity, and solidify Egypt’s position as a regional industrial and logistical hub.

Al-Wazir urged VW to capitalize on Egypt’s advantages as a gateway to Africa, emphasizing the need to integrate local and regional supply chains, including global component suppliers, into VW’s worldwide supply system. He also highlighted the benefits offered by the National Automotive Industry Development Program (AIDP).

Schäfer affirmed that Egypt possesses the necessary elements, including its industrial infrastructure, strategic location, human capital, and East Port Said’s potential as a world-class platform, to play a pivotal role in the future of the African automotive industry. He described the cooperation as a step toward a long-term partnership aimed at localizing industry, boosting competitiveness, increasing exports, and integrating Egypt into the global automotive value chains.