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Egypt-Based GV Investments Partners with Chinese Company to Manufacture EVs

May 28, 2024
Image Credit: Wikimedia Commons

Egyptian investment company GV Investments signed a partnership agreement with China’s car manufacturing giant FAW Group to produce affordable electric vehicles (EVs) for Egypt, GV Investments CEO Sherif Hamouda told Asharq Business on 27 May.

Under the deal, a subsidiary of Egypt’s GV Investments will begin local production of FAW’s cheapest model during the first quarter of 2025 – requiring an investment of USD 20 million (EGP 951 million) for the necessary industrial facilities.

The car, known in China as Bestune E05, is one of the world’s most affordable electric cars – costing around USD 17,500 (EGP 832,000) in China.

Hamouda explained that the manufacturing scope would be expanded over the next three to five years, aiming to produce cars with 65 percent locally sourced components for export to the Middle East, Africa, Europe, and Latin America.

He added that the ride-hailing service sector will be a key target market for the vehicles.

Other domestic car manufacturing companies like state-owned El Nasr Automotive Manufacturing Company and Al-Mansour Automotive have also recently pursued opportunities to produce electric vehicles.

The company’s ambitions in the electric vehicle sector are the latest for the North African nation, which has a population of approximately 106 million yet only thousands of battery-powered vehicles on its roads.

“Changing the culture of using fossil fuel-powered cars is not easy…[electric cars] will not spread without government support,” Hamouda mentioned, urging the government to provide more incentives to the sector to encourage potential buyers.

As of 2023, only around 4,000 electric vehicles are used in Egypt, in comparison to around 10 million standard vehicles in use.

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