12 things to know about Egypt and Volvo’s new $62 million electric bus project
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Egypt has just taken a major step toward localizing green mobility. The country’s leading bus manufacturer, MCV, has partnered with Sweden’s Volvo Buses to launch a $62 million electric bus production line in Sharqiya. Here are the key things to know:
1. The investment totals $62 million
The project is worth EGP 3 billion (about $62 million), making it one of the largest recent investments in Egypt’s automotive sector.
2. The plant is located in Sharqiya
The new production line is based in the Nile Delta governorate of Sharqiya, giving it access to Egypt’s industrial infrastructure and export routes.
3. Capacity reaches 1,200 buses per year
Once fully operational, the facility will be able to produce up to 1,200 electric buses annually.
4. The buses are designed for export to Europe
Phase one of the project is dedicated entirely to exports, targeting European markets with some of the strictest quality and environmental standards.
5. At least 50 percent of components will be made in Egypt
Under the 2023 agreement, half of the components in each bus must be locally produced, reducing import dependency and creating local supply chains.
6. Egypt aims to boost exports to $170 billion by 2030
The project aligns with Egypt’s broader industrial strategy, which seeks to increase non-traditional exports, including automotive products, to $170 billion within the next five years.
7. The plant supports Egypt’s climate commitments
By focusing on electric buses, the facility will contribute to reducing carbon emissions in line with Egypt’s pledges under global climate agreements.
8. Egypt now has six vehicle manufacturers
According to Industry and Trade Minister Kamel El-Wazir, Egypt’s automotive sector includes five private companies and one state-owned firm, boosting total national capacity.
9. Total bus production capacity reaches 2,500 units annually
With this new line, Egypt can now produce around 2,500 buses per year, reducing the need for imports and strengthening self-sufficiency.
10. The project uses automated, international-standard systems
The facility is equipped with advanced automated systems that meet global standards, a requirement for supplying the European market.
11. The project builds on the 2022 automotive strategy
In June 2022, Egypt launched its Automotive Industry Development Programme (AIDP) to expand assembly, attract investment, and make Egypt a gateway to Africa’s car and bus markets. The new line is a direct outcome of that policy.
12. Egypt wants to position itself as a regional hub for EVs
By securing a deal with Volvo, one of the most respected names in global transport, Egypt is signaling its ambition to become a manufacturing base not just for local demand but also for export to Europe and Africa.