El Nasr Automotive Manufacturing, Egypt’s state-owned carmaker and Nissan, a Japanese multinational automobile manufacturer, announced that they have reached an initial agreement to produce 100,000 cars a year in Egypt.
The minister for public enterprises, Hesham Tawfik, who made the announcement, said the agreement is part of efforts to boost the proportion of locally made auto components in cars assembled in Egypt with a view to exporting the majority of the vehicles.
According to a ministry statement, a final contract is expected to be signed within three months. However the target date for the production of 100,000 cars a year was not highlighted in the statement.
Reports from a state media revealed that there are government plans to revive Nasr Automotive, which specialised in making local versions of Fiat cars before it ceased production shortly before Egypt’s 2011 uprising.
An Egyptian finance ministry report shows that Nasr Automotive’s revenue rose to 5 million Egyptian pounds ($289,185) on assets of 350 million Egyptian pounds in the 2016-17 financial year, from zero the previous year.