The Egyptian Automotive Industry A Promising Future

1
The Egyptian Automotive IndustryA Promising
Future

• Presented by
• Houssam Abdel-Aziz

2
Overview

• Market trends
• Recent developments in the Egyptian Auto Industry
• Industry footprint (OEMs)
• Auto feeding industry
• Automotive why Egypt?

3
Rapid GrowthVehicle Registrations
In thousands of Vehicles
14
261
32
228
42
172
68
121
72
Source AMIC Reports
4
Market Trend
Turkey GDP per Capita is 5,000 and its car
penetration is 70
5
Increased International Interest in the
Automotive Market in Egypt
2008
2007
IDG inaugurated e2 Egypts first industrial park
dedicated for Auto Components Engineering
Industries
Sabanci with Lasheen invested more than US 30
million to build 1000 coaches per annum
Marcopolo to invest with Ghabbour more than US
50 million to build 1,500 coaches
Pirelli invested US 65 million to increase Truck
Tyre capacity by 50
GM Egypt just added state-of-the-art paint line
with an investment of US32 million. Yr 2007 to
Yr 2009 CAPEX over US 75 million
Footprint Optimization
6
Automotive Assemblers in Egypt

• Arab American Vehicles (Chrysler Jeep)
• Daewoo Motor Egypt
• Former Daewoo, now Chery)
• EGA
• (Mercedes Passenger Cars)
• GB-Polo
• (GB Auto Marcopolo)
• General Motors Egypt
• Peugeot Egypt
• Suzuki Egypt
• Temsa Egypt

• Automotive Eng. Co
• (IVECO, Daewoo Bus)
• Automotive Gate Egypt
• BAG
• (BMW, Brilliance, Mahindra Great Wall)
• GB Auto
• Gorica Egypt
• JAC
• Lada Egypt
• MCV
• NACO (Tofas)

7
Automotive Components

• The Egyptian automotive components production is
  estimated at 660 million
• More than 375 automotive feeding companies
• Multinational Leoni, Sumitomo, Valeo
  (software), WHS.
• Joint ventures Draexelmaier, Pirelli.
• Most of 375 are ISO9000 certified many are
  ISO/TS16949 certified

• US 460 million serving the OE local
• assembly and the aftermarket for 3.2 million
  vehicles
• Exports estimated at US 200 million
• Over 90 of exports are destined to the
• EU (OEM aftermarket)

8
Happy Customers in Europe
9
Why Egypt?

• Logistics
• 5 to 7 days to Europe (JIT)
• Competitive freight costs
• Low cost factors of production
• Energy
• Land
• Buildings

10
Why Egypt?

• Workforce
• Young, trainable and eager to learn (67 of the
  population is between the age of 15 and 48)
• Monthly salaries ranging from 94 for a low-skill
  worker to 812 for a skilled engineer).
• Political and Economic stability
• Income/Corporate Tax Customs reductions
• An exceptional portfolio of preferential trade
  agreements
• Communication (language time zone)
• Top Performer in Doing Business 2008 (World Bank)

11
Thank You