Why electric cars faltered in Egypt?
Minister of Business Sector Hisham Tawfiq announced in televised statements that the agreement with the Chinese partner was cancelled, and that it would go to another partner.
Cairo – On June 28, 2020, the statements of the Egyptian Minister of Business Sector, Hisham Tawfiq, came out to announce that Egypt is in the process of reviving the auto industry again, through the state-run Nasr Company of the Holding Company for Metallurgical Industries, which stopped producing the “Nasr E70” car that was known In the Egyptian market 11 years ago.
At the time, Tawfiq announced the signing of an agreement with the Chinese company, “Dongfeng Motors”, saying on his Facebook page, “Detailed studies and agreements with the Chinese company, Dongfeng Motors are being completed, after signing the agreement weeks ago, the car has a range of about 400 kilometer for a full charge.
Despite these statements, the project did not come to light after it faced obstacles that delayed the launch of the car in its three categories. Hisham Tawfik, Minister of Business Sector, announced in a television statement on December 4, the cancellation of the agreement with the Chinese partner and the direction of another partner, saying, “The partner The Chinese, his reaction, came out not good (not good) and his prices are high.”
It is noteworthy that the memorandum of understanding between the state-run Al-Nasr Company and the “Dongfeng” company was signed in June 2020 with investments amounting to two billion pounds, and perhaps this sparked a state of anger in the House of Representatives. The Speaker of the Egyptian Parliament addressed the Minister of Business Sector regarding the failure of the government’s negotiations with the Chinese company.
Among the characteristics of the “Al-Nasr” car, which was to be produced in the Egyptian market, was that it had a capacity of 147 horses and a maximum speed of 150 kilometers per hour, and it also traveled from 400 to 500 kilometers on a single charge, and its price started from 360,000 pounds, depending on the category and capabilities.
On the other hand, Tawfiq announced the direction of a German company that designs cars, and 3 other Chinese companies will be negotiated with them to produce the awaited car. It is planned for the middle of next year, according to the Egyptian media.
Statistics and numbers
The proportion of electric cars in Egypt was about 159, according to the Government Mobilization and Statistics Agency, until the end of the past year 2020, and the number increased to reach the number of licensed cars that were declared compulsorily licensed according to the Egyptian Association for Vehicle Insurance, about 250 cars and vehicles until last November, out of 440,997 vehicles and 42 others out of 300,000 and 485 vehicles were licensed in the preceding month.
Analysts believe that there is a desire from the Egyptian government to introduce the electric car, which was translated into a package of decisions in the interest of the buyer, such as canceling the customs duties for imported electric cars since 2018, and the tendency to provide infrastructure for them, such as building many private charging stations. The Minister of Business Sector announced the establishment of a company to establish 3,000 electric charging stations in 3 governorates in a first phase of the plan to implement 42,000 stations in Egypt within the plan for the localization of the electric vehicle industry in Egypt.
The reality of the market and the future of cars in Egypt
Engineer Ayman Mohamed, a renewable energy expert and owner of the Electric Car Club group, confirms via the social networking site Facebook, that the stumble of the “Nasr” car is undoubtedly sad news, especially in light of the capabilities that were supposed to exist in the car and would have ensured it would compete with many other cars in price. And the capabilities, and in light of the strong publicity that was promoted for the car, hoping to solve the problem soon and provide a car with the same specifications previously announced.
He pointed out that electric car technology is advancing rapidly and the issue of the difficulty of charging cars has become a thing of the past, so the car can now be charged from home or shop electricity, adding that electric cars are future cars and many countries seek to support them, and for this there is a need to support their presence in Egypt through the will of Political, to be available to consumers as an alternative to cars that depend on gasoline and fuel, as it will reduce environmental problems and reinforce trends that undermine the effects of global warming and the problems associated with climate change.
“The government’s vision is ambitious, but absorbing the electric car into the Egyptian market needs time,” says Alaa El-Din Fahmy, one of the car dealers and a member of the Automotive Division of the Chambers of Commerce, in special press statements, referring to the need to provide an infrastructure that accommodates electric cars, such as providing charging stations for them. , it is still characterized by a degree of limitations with the low number of electric cars in the Egyptian street.
He pointed out that the government’s approach is concerned with the presence and spread of electric cars in Egypt, and the final decision here remains besides the quality, the price of the car and the expansion of the culture of its use, which was a reason for the Ministry of Business Sector to slow down and re-choose another company to provide a car at a suitable price for the Egyptian market, especially since Electric cars are still new to the Egyptian market.
He explained that the Egyptian consumer who wants to buy still needs information about the car and its features, and to provide purchasing facilities that make him take the purchasing decision, which is what the Ministry of Business Sector tried to make available for the “Nasr” car, which was scheduled to be offered by announcing the provision of support in the amount of 50 thousand pounds to the first 100 thousand buyers. As an incentive to buy.