The El Nasr Automotive Manufacturing Company is set to rehabilitate its factory for manufacturing and producing Egypt’s first electric vehicles (EVs), with 55% local components.
The company is affiliated to the Holding Company for Metal Industries which falls under the Ministry of Public Enterprise Sector’s umbrella.
As part of its plans for the upcoming period, El Nasr has signed two contracts with the Chinese company, Dongfeng Motor Corporation, to start manufacturing EVs in Egypt and rehabilitate its factory.
The company’s Managing Director, Hani El Khouly, said that the Ministry of Public Enterprise Sector has decided to revive the company through cooperation with one of the largest car manufacturers in China. This will see the El Nasr Automotive Manufacturing Company produce electric cars in implementation of President Abdel Fattah Al-Sisi’s directives.
El Khouly said that the company had contracted with the Chinese company to replace the current plant, so that El Nasr could produce and put the products on the Egyptian market within one year.
He highlighted that the contract does not mean getting rid of all the factory’s current equipment and production lines, but instead aims to rehabilitate its infrastructure. He noted, however, that 65% of the factory’s equipment will be replaced during the next six months.
El Khouly added that the rehabilitation of the factory’s buildings includes works on the vehicle assembly plant building and parts manufacturing lines, in addition to infrastructure repair operations. This includes work on its water networks, drainage, and the supply line.
He said that El Nasr signed the two contracts with Dongfeng on 18 January. The first contract will focus on producing EVs, with the second focused on rehabilitating the plant in cooperation with one of the companies affiliated with the Ministry of Public Enterprise Sector.
He said that the company chose to contract with the Dongfeng Motor Corporation, as it is the second-best company specialised in manufacturing and producing electric cars operating in the Chinese market. The Chinese company produces as many as 4 million EVs annually.
El Khouly said that El Nasr deals with the most prominent international companies that manufacture and produce cars, including Toyota, Nissan, Honda, Mercedes, Audi, Peugeot, and Citroen.
El Nasr was established in 1959, as an Egyptian company for the manufacture of passenger cars and heavy transport trucks. Its production capacity reached 20,000 cars annually, and it is located in Wadi Hof in Helwan.
El Khouly said that the capacity of EV production lines globally has reached approximately 53,000 cars annually. As a result, the company aims to produce 25,000 cars in the first phase for sale in the local market.
He stressed that if the local consumer demand for EVs rises during the coming period, the company will increase its production capacity by 100%.
El Khouly said that the percentage of the local components in the El Nasr produced EV will start at 55%, with the remaining percentage from China being imported from China, since it is the largest global producer of such vehicles.
He added that China has developed scientifically and technologically in the production of EVs, and has become able to produce the best brands in different price categories to satisfy all classes of society.
He said that 70% of the cost of rehabilitating the factory to produce electric cars will be provided through several investment banks, with the remaining percentage being self-financing.
El Khouly pointed out that the most prominent investment banks in the Egyptian market wishing to finance the project include: the National Bank of Egypt (NBE); the Commercial International Bank (CIB); Banque Misr; and QNB Al-Ahly. He also said that the investment cost of the development process will reach about EGP 2bn.
He noted that the company will offer the E70 electric vehicle model in Egypt during the first quarter (Q2) of 2022 in two categories, namely a passenger car and a taxi. The price of taxis will range between EGP 320,000 and EGP 350,000, while passenger cars will be sold for a price tag of EGP 390,000.
El Khouly added that the E70 will be able to reach a maximum speed of 150 km/h with a capacity of 145 hp and a driving range of more than 400km per charge. The model is set to contain advanced safety systems such as: Anti-lock Breaking Systems (ABS); Electronic Breakforce Distribution (EBD); Electronic Stability Control (ESC); BA; a traction control system (TCS); and HSA.
The car boasts several luxury features, such as a sunroof, electric seats, a control screen, an air conditioner with plasma technology, and additional safety systems such as 360-degree peripheral vision, and tire pressure indicator.
El Khouly stated that an agreement had been reached with the Ministry of Electricity and Renewable Energy, provided that the kilowatt would be sold at a price of 47.5 piasters. This would also take into account that the EV owner would bear 50 piasters for every hour during the year.
He said that the company is considering joining the presidential initiative to replace aging vehicles on Egypt’s roads, which the government announced at the beginning of this month.
He also said that the cars will be produced a year from now, and the initiative will take about three years to be implemented.
The nationwide initiative to convert vehicles to work on natural gas is one of the national initiatives that integrates with the state’s strategy to raise the standard of living among citizens and provide them with the best services. It also aims to support the national industry in the field of cars, and maximise the benefit from natural resources.
El Khouly mentioned that the government has taken a positive step towards licensing electric cars during the past period.
He emphasised that there are a number of studies showing that EVs will be popular in the Egyptian market after more charging stations are constructed, and the granting of licences for these vehicles.
They are also more economical for the consumer, by up to 60%, than those that run on traditional fuel, in addition to their not requiring periodic maintenance. Electricity is also cheaper than fuel by more than 50%.