CAIRO, May 21 (MENA) - The Cabinet approved, during its weekly meeting under Prime Minister Mostafa Madbouly Wednesday, a new automotive production incentive program as part of the National Strategy for the Automotive Industry.

The initiative aligns with the directives of President Abdel Fattah El Sisi, who has consistently emphasized the importance of developing and localizing this promising sector, given its vital role in attracting investment, increasing exports, and strengthening the national economy.

The newly approved program aims to establish a competitive and robust industrial base for vehicle manufacturing and its related industries in Egypt. It seeks to create an attractive investment climate that promotes the localization and deepening of local manufacturing, reduces reliance on imports, and encourages exports, while maximizing the benefits of international trade agreements.

Key objectives of the program include increasing the local value-added component in automotive production to 60%, raising the local industrial input to over 35%, and boosting annual vehicle production to 100,000 units. The program also supports the transition toward environmentally friendly vehicles and encourages the establishment of manufacturing facilities in priority development areas.

Moreover, the program offers additional incentives, particularly for exporting companies, by enabling them to access rewards for their export activities. It also includes extra benefits for companies that exceed the program’s performance targets, reinforcing Egypt’s commitment to fostering sustainable industrial growth.
(MENA)
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