As reported by South China Morning Post, BAIC Group, a state-owned automaker, plans to produce 20,000 EVs annually at a new Egyptian assembly plant by late 2025, scaling to 50,000 units within five years. The facility, developed with local partner Alkan Auto, will create approximately 1,200 jobs.
Zeekr, Geely Auto’s premium EV brand, also announced plans to enter Egypt by the end of 2024 through a distribution agreement with Egyptian International Motors Group.
Egypt’s strategic location — connecting Asia, Africa, and Europe through the Suez Canal — makes it an attractive manufacturing hub. The country offers lower labor costs than Morocco and South Africa, while providing access to Middle Eastern and European markets.
Other Chinese automakers are already establishing African operations. BYD Auto maintains presence in 12 African markets, while Neta Auto EV plans assembly operations in Kenya. Chinese-made electric buses now operate in Ethiopia, Kenya, Rwanda, and South Africa.
Morocco has emerged as another key destination, leveraging its free-trade agreements with the US and EU to attract Chinese investment.
The African pivot represents a strategic response to Western trade barriers, particularly the US’100 percent tariff on Chinese EVs. By establishing local production, Chinese manufacturers can maintain growth while potentially accessing European markets through countries like Morocco.
The move also positions Chinese manufacturers to capture early market share in Africa’s emerging EV sector, where growing urban populations and increasing environmental awareness could drive significant future demand.
African EV exports from China surged 291 percent year-on-year in 2023, indicating strong market potential.
