Egypt has entered into an agreement with Chinese automaker ROX Motor and Ezz El Arab El Sewedy Industrial Investment Group to produce vehicles domestically and expand the country’s automotive export capacity.

The deal will see the joint venture manufacture ROX range-extended electric vehicle (REEV) models in Egypt.

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The move aligns with the government’s broader industrial strategy to deepen localisation, grow value-added manufacturing and accelerate the shift to cleaner transport.

The project sits within Egypt’s Automotive Industry Development Programme (AIDP), through which the country is seeking to attract foreign investment, build out domestic vehicle production and establish itself as a regional automotive manufacturing hub.

Egypt’s Minister of Industry Khaled Hashem, as reported by Arab News, said the country’s investment climate had undergone considerable change, adding that years of efforts to position the country as a regional investment hub are now translating into direct investments and partnerships with major international companies.

Hashem described the automotive sector as a priority area under the AIDP, which targets annual domestic vehicle production of 100,000 units by 2030.

He said the government is backing the sector through incentives and investment facilitation measures aimed at deepening local manufacturing and strengthening Egypt’s industrial base.

“He added that such effective partnerships with major national industrial entities reflect the international community’s strong confidence in the competitiveness of the Egyptian economy,” the ministry statement cited in the report said.

The minister characterised the ROX Motor–Ezz El Arab El Sewedy partnership as a well-timed move that could help address domestic demand, boost export capability and open pathways for locally manufactured vehicles into international markets.

He also called for a clear roadmap to raise local content and value-added output as the project scales.

The agreement is expected to support Egypt’s industrial development goals by expanding local vehicle production capacity, strengthening export potential and facilitating technology transfer within the automotive sector.