Egypt inks $135M deal to produce MG cars locally, boosting auto industry

Photo : Abu Dhabi Media Office

Egypt has taken a big step to grow its car-making industry by signing two important agreements. These agreements are to build a factory for making MG cars with an investment of $135 million. The first agreement is between Al Mansour Automotive Group and China's SAIC Motor Corporation. It allows Egypt to make MG cars locally. The second agreement is for giving land in New October City’s industrial area to set up the factory. 

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The factory will cover an area of 126,000 square meters. It will start working in the second quarter of 2026. In the beginning, the factory will make 50,000 cars each year. Later, it will increase to 100,000 cars a year. The factory will use more than 45% of local parts to make the cars. This plan matches Egypt’s goal to support local industries and export more products.

The project will create over 10,000 jobs, helping many people find work. It will also offer training to teach local workers the skills needed to work in car-making. The factory will have modern equipment for tasks like assembling car bodies, painting, and putting the cars together.

This project shows that Egypt wants to become a leader in making cars in the region. The country has a good location and many skilled workers, which makes it an ideal place for car production. The agreements are also expected to bring more foreign companies to invest in Egypt.

Kamel El-Wazir, the Deputy Prime Minister for Industrial Development, said this project is very important. It fits with Egypt’s plan to grow its industries and become a strong player in the global car-making market. This factory is an important step toward a bright future for Egypt’s economy and car industry.