- The agreement covers the local manufacture of one of First Automobile Works’s (FAW) electric vehicle models starting in 2025.
- Two automobile manufacturers announced that they would build a $35 million factory by 2025 to manufacture and export electric vehicles in the land of the pharaohs.
First Automobile Works (FAW), China’s third largest carmaker, will relocate its “Bestune NAT” electric vehicle model production to Egypt by 2025. This development is part of the signed agreement between FAW and an Egyptian firm, GV Auto.
FAW and GV Auto, a subsidiary of the GV Investments group, signed an agreement covering the local manufacture of one of FAW’s electric vehicle models, which will commence in 2025. With this initiative, Egypt wants to become a regional hub for manufacturing and exporting electric vehicles.
This Bestune NAT electric vehicle costs close to $18,000 in China. This relocation of production to Egypt should enable the revision of the selling price downwards.
In addition, it aims to develop cooperation in the automotive sector, particularly between North Africa and other regions (sub-Saharan Africa) and continents (Europe and Latin America) where they will export these cars.
The CEO of GV Investments, Sherif Hamouda, said, “This is imperative, given that production capacity for electric vehicles will increase over the next three to five years, and the aim is to eventually produce cars in which 65% of the components are locally sourced.”
The group plans to invest up to $20 million in this project. Similar initiatives are underway in Egypt. Two years ago, the multinational group resulting from the merger of PSA Peugeot Citroën and Fiat Chrysler Automobiles announced that it would build a $35 million factory to manufacture and export electric vehicles in the land of the pharaohs by 2025.