(DNE photo)
The Egyptian Organization for Standards and Quality issued 128 specifications for car production and components in Egypt, said Mohamed Abdel Moteleb, Chairman of the organisation during the Egypt Automotive Summit Sunday.
The summit saw various speakers and representatives raise issues in the Egyptian automotive industry, making recommendations and announcing amendments.
Abdel Moteleb added that 10 standard specifications have already been applied on local companies, and that they have been recently applied on imported automobiles.
He further noted that 10 other standards are now being studied, ensuring that the authority will try to meet all the views and requests of the concerned parties.
Abdel Moteleb added that the main reason behind the increase in accidents and the short lifespan of cars is the lack of commitment to the Egyptian and international specification standards. He also highlighted that the authority is paying a lot of attention to the issue to make sure that the commitment to the standards is met.
Mohamed Abdel Moneim Alkady, a Board of Directors member at the Chamber of Engineering Industries, said that the development of the technological sector in general is crucial at this point. He added that it will aid the car manufacturing industry in the country.
Alkady said that exports in the engineering industry amount to EGP 15bn, a third of which are made up by feeder industries, amounting to EGP 5bn. He pointed out that the strengths found in the feeder industries lie in the good quality and low prices of the products. He also noted that Egypt is competing with China in terms of car component prices offered by the industry.
A major weakness found in the feeder industries is the lack of availability, causing production in Egypt to be very low, he said. He pointed out that Egypt produces only hundreds of units, whereas other competing markets produce millions of units.
Alkady added that Egypt exports to foreign countries including Germany, but has few exports going to African and Arab countries.
Head of the Customs Authority Magdy Abdelaziz said the automobile market is faced by two major problems, including the falsifying of invoices and the prices offered at rates lower than the value of the products.
Abdelaziz called on all car manufacturing companies to assist the customs department in achieving the exact values and prices of cars.
Hussein Mustafa, Executive Director and Official Spokesman for the Egyptian Automobile Manufacturers Association said the government has to offer tax incentives as tax reductions and grace periods to provide better solutions for investors.
He added that those solutions will not only increase investments but they will also aid in the rapid growth of the official market, rather than the parallel, unofficial market.
Mustafa added that a need for communication between automobile companies and the Ministry of Investment is very important. He pointed out that companies need to understand the effects of the partnership with the European market on local manufacturers, which is something that the government has not clarified yet.
