Nissan Motor is set to invest $45m in expanding its vehicle production operations in Egypt in 2026, with plans to lift local output by about one-third and increase exports to markets across Africa.
The project includes the addition of a new production line with the capacity to produce at least 10,000 extra vehicles a year.
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In an interview with Bloomberg, Nissan’s Africa managing director Mohamed AbdelSamad said more than half of the parts used in the added production would be sourced locally.
Nissan’s current factory in western Cairo manufactures roughly 30,000 vehicles annually.
The investment comes as the Japanese carmaker carries out a wider global restructuring programme, which has involved job cuts and plant closures as it seeks to address losses put at Y275bn ($1.72bn) in the previous financial year.
The planned expansion in Egypt points to a greater focus on lower-cost manufacturing bases and production geared towards exports.
Over the past three years, Nissan Egypt has shipped more than 25,000 vehicles to African countries, with Libya remaining its biggest export market.
The company said it is still reviewing logistics options to maintain exports amid disruption tied to the conflict involving Iran.
The move also underlines Nissan’s view of Egypt as a regional manufacturing and export base.
The country has been recovering from a lengthy foreign currency shortage after securing a $57 billion international bailout and is pushing a manufacturing-led recovery plan aimed at narrowing its trade gap.
Nissan said it has invested about $276m in Egypt so far and is looking to gain from any future extension of the African Continental Free Trade Area into the automotive industry.
Earlier this month, Nissan Motor presented its “Mobility Intelligence for Everyday Life” strategy, outlining its direction for future mobility.
Under the strategy, Nissan has set a long-term aim of incorporating Nissan AI Drive technologies into 90% of future models.
It also plans to reduce its product range to 45 models from 56, while broadening powertrain options.
