Egypt has signed three binding framework agreements with Japan’s Nissan, US’ General Motors and Amsterdam-based Stellantis to set up automobile plants in the country.

Prime Minister Mostafa Madboul said three companies are expected to invest $145 million over a three-year period in local manufacturing units with annual production volumes in the range of 60,000 to 70,000 vehicles.

He said the agreements include export commitments and production of electric vehicles in keeping with the trend of making environment-friendly cars while reducing consumption of fossil fuels.

With cars emerging as the fourth biggest imported product in terms of value, the Egyptian government launched a national strategy under Egypt Vision 2030 to localise automotive industry.

Last week, Business Egypt news website reported that the government has launched an automotive industry advisory council that includes private and public sector representatives for preparing policies, strategies, regulations, and legislation. Additionally, the government has launched a fund to support local manufacturing of environment-friendly vehicles, and unit dedicated to localisation.

(Writing by Eman Hamed; Editing by Anoop Menon)