Egypt’s MCV, Sweden's Volvo launch $62 mln electric bus production line
This new facility, the result of an agreement signed in September 2023, is dedicated to producing buses for export to European markets.
Minister of Industry and Trade Kamel El-Wazir and Volvo Buses Chairwoman Anna Westberg attended the launch ceremony on Wednesday at the new facility's location in the Nile Delta governorate of Sharqiya.
El-Wazir said the investment reflected confidence in Egypt’s economy and policies for attracting high-tech industries.
He added that the project, which relies on automated systems that meet international standards, would help reduce carbon emissions in line with Egypt’s climate commitments.
The project’s first phase is dedicated entirely to exports to Europe, one of the world’s most demanding markets in terms of quality and environmental standards, El-Wazir noted.
“This is proof that Egypt can serve as a base for manufacturing and export for the world's most advanced markets,” he said.
According to the minister, the project also supports the government’s target of increasing industrial exports to $170 billion by 2030, while broadening the country’s export portfolio beyond traditional goods.
The venture also aligns with Egypt’s goal to localize production of automotive components to reduce dependence on foreign parts.
Under the 2023 deal, MCV and Volvo will ensure that 50 percent of the components for each unit are produced in Egypt.
In recent years, the Egyptian government has already taken several steps to develop the local automotive industry to keep up with regional players.
Minister El-Wazir clarified that Egypt’s automotive sector has expanded in recent years, with five private companies and one state-owned firm now producing vehicles.
Such development gives the country an annual capacity of up to 2,500 buses, ending its reliance on imports, he stressed.
In June 2022, Egypt launched a national strategy to develop its automotive industry, including the Automotive Industry Development Programme (AIDP), which aims to boost assembly capacity, attract new investment, and position Egypt as a gateway to emerging vehicle markets in Africa.