Electric car: the giant Stellantis will set up a factory in Egypt

#Other countries : Stellantis, born from the merger of the PSA Peugeot-Citroën group and Fiat Chrysler Automobiles, will set up an electric car production unit in Egypt. It is the third manufacturer to announce its installation in the country.

Having lagged behind in the continent’s car manufacturing sector compared to South African and Moroccan leaders, Egypt aims to catch up by betting on electric cars. A booming segment, which should be the spearhead of the automotive sector in the coming years.

After the announcement of the start of the project led by Al Nasr Automotive Company and a Chinese partner, after the announcement of Mercedes-Benz’s interest in producing electric vehicles in Egypt, it is the turn of Stellantis, an automotive group born in 2021 from the merger of PSA Peugeot. -Citröen and Fiat Chrysler Automobiles, to join the ranks. The announcement of the creation of this player was made by the Egyptian Prime Minister Mostafa Madbouli. The project will be completed in 2025, according to the head of the Egyptian government, who explains that this establishment will help to develop the green mobility sector in Egypt.

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For this implementation, an initial investment of US$ 35 million was announced. Stellantis will have as its local partner the conglomerate Mansour Group, the second largest company in Egypt in terms of revenue.

With Stellantis, Egypt, which does not want to miss the electric shift in the automotive sector, has its third electric car manufacturer. It is worth remembering that the country of the pharaohs is expected to produce its first electric cars in August 2022 as part of a partnership between the public company Al Nasr Automotive Company and the Chinese automaker Dongfeng Motor Corporation. The unit, whose production has been postponed by the Covid-19 pandemic, will start its activities with a production of 50 thousand vehicles per year before accelerating. The vehicles that will be manufactured by Al Nasr, branded Nasr E70, will be able to reach a speed of 145 km/hour with a range of 400 km per charge. Then, at the beginning of last May, the giant Mercedes-Benz announced its intention to set up an electric car production unit in Egypt.

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With these three manufacturers, Egypt wants to take the lead on the African continent in terms of electric mobility. And for that, the Egyptian authorities do not skimp on the means to encourage the production and adoption of these vehicles. They want to replace part of the country’s aging and polluting car fleet with locally made electric cars. Among them, the replacement of the 11,000 classic taxis in the capital with more economical and ecologically correct cars. Likewise, government agencies are required to replace 5% of their car fleets with electric cars.

And to support this dynamic, the authorities have committed to building 3,000 fast charging stations, at a rate of 1,000 per year in 3 years, offering the possibility to simultaneously charge 6,000 electric vehicles.

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Furthermore, Egypt aims to become a platform for the production and export of electric cars in the region, mainly targeting the Moroccan, Algerian and South African markets, where Stellantis is already present through the assembly of classic cars.

Remember that the electric car sector is experiencing a real boom. Supply is expected to explode to reach 145 million units by 2030, compared to 6.6 million electric vehicles sold worldwide in 2021, including 3.3 million in China.

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