Minister of Industry Khaled Hashem discussed with a delegation from Germany-based automaker Volkswagen the company’s plans to expand its automotive manufacturing operations in Egypt in the coming period, as per a statement.

The talks reviewed studies currently being prepared by Volkswagen to manufacture cars in Egypt in cooperation with the Egyptian German Automotive Company (EGA), using existing factories and production lines. The ministry said the step would help save time and costs and pave the way for the start of Volkswagen’s electric vehicle (EV) manufacturing operations in East Port Said.

The meeting also discussed a review of local suppliers to assess the extent to which Volkswagen vehicles could depend on locally sourced components.

The discussions covered the advantages and incentives offered under the National Automotive Industry Development Program (AIDP), including cash incentives linked to increasing local content and added value, investment growth, environmental and tax incentives, export incentives, and the activation of incentives under the Investment Law.

Hashem said his ministry is holding intensive meetings with several major automotive manufacturers to encourage them to begin actual manufacturing in Egypt and benefit from the incentive package offered by the program. He added that the AIDP aims to increase production to 100,000 vehicles annually by 2030, while expanding supporting industries.

Additionally, Hashem pointed out that the largest share of incentives and market opportunities will be allocated to the first companies that begin local manufacturing and meet the program’s requirements related to industry localization, raising the share of locally sourced components and added value, and improving the efficiency of local suppliers to support supply chain integration and reduce reliance on imports.

The minister urged Volkswagen to accelerate the preparation of market plans and studies, as well as the decision-making process within the parent company, to use current opportunities to turn Egypt into a hub for Volkswagen vehicle manufacturing.

He noted that such a step would serve both the large domestic market and export markets, particularly in Africa and the Middle East.

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