Electric car: the giant Stellantis will set up a factory in Egypt

Electric car: the giant Stellantis will set up a factory in Egypt

#Other countries : Stellantis, born from the merger of the PSA Peugeot-Citroën group and Fiat Chrysler Automobiles, will set up an electric car production unit in Egypt. It is the third manufacturer to announce its establishment in the country.

Having lagged behind in the car manufacturing sector on the continent, compared to the South African and Moroccan leaders, Egypt intends to catch up by betting on electric cars. A booming segment, which should be the spearhead of the automotive sector in the years to come.

After the announcement of the start of the project led by Al Nasr Automotive Company and a Chinese partner, then the announcement of Mercedes-Benz’s interest in producing electric vehicles in Egypt, it is the turn of Stellantis, an automotive group born in 2021 from the merger of PSA Peugeot-Citröen and Fiat Chrysler Automobiles, to join the ranks. The announcement of the establishment of this player was made by Egyptian Prime Minister Mostafa Madbouli. The project will be completed in 2025, according to the head of the Egyptian government, who explains that this establishment will help develop the green mobility sector in Egypt.

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For this implementation, an initial investment of $35 million has been announced. Stellantis will have as a local partner the conglomerate Mansour Group, Egypt’s second largest company in terms of turnover.

With Stellantis, Egypt, which does not want to miss the electric shift in the automotive sector, has its third manufacturer of electric cars. Remember that the country of the pharaohs should produce its first electric cars in August 2022 as part of a partnership signed between the public company Al Nasr Automotive Company and the Chinese car manufacturer Dongfeng Motor Corporation. The unit, whose production has been delayed by the Covid-19 pandemic, will start its activities with a production of 50,000 vehicles per year before ramping up. The vehicles that will be manufactured by Al Nasr, of the Nasr E70 brand, will be able to reach the speed of 145 km/hour with a range of 400 km per charge. Then, at the beginning of last May, the giant Mercedes-Benz announced its intention to set up an electric car production unit in Egypt.

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With these three manufacturers, Egypt wants to take the lead on the African continent in terms of electric mobility. And to achieve this, the Egyptian authorities do not skimp on the means to encourage the production and adoption of these vehicles. They want to replace part of the country’s aging and polluting car fleet with locally manufactured electric cars. These include replacing the capital’s 11,000 classic taxis with more economical and environmentally friendly cars. Similarly, government agencies are required to replace 5% of their car fleets with electric cars.

And to support this dynamic, the authorities have undertaken to build 3,000 fast charging stations, at a rate of 1,000 per year in 3 years, offering the possibility of simultaneously charging 6,000 electric vehicles.

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Beyond that, Egypt intends to become a platform for the production and export of electric cars in the region, primarily targeting the Moroccan, Algerian and South African markets where Stellantis is already present through the assembly of classic cars.

Remember that the electric car sector is experiencing a real boom. The supply is expected to explode to reach 145 million units by 2030, compared to 6.6 million electric vehicles sold worldwide in 2021, including 3.3 million in China.