Presentation on theme: "Opportunities in the Automotive Industry in Egypt"— Presentation transcript:
1Opportunities in the Automotive Industry in Egypt
2Overview of Vehicle Production Components IndustryAutomotive Strategy“1M2020”What Egypt has to Offer
3Vehicle Assemblers in Egypt Egyptian Companies Private & Public 100% Foreign OwnershipJoint VenturesPassenger CarsCommercial VehiclesGorica EgyptAutomotive Eng. Co.
4Rapid Growth Vehicle Registrations In thousands of Vehicles15%262-21%21%25032%22820642%17268%12172ProjectedSource: AMIC Reports
5Auto Components Industry in Egypt The Egyptian automotive components production is estimated at US$ 1.3 billion:US$ 900 million serving the OE localassembly and the aftermarket for 4.1 million vehiclesAnnual growth rate is 14.8%2. US$400 million ExportsOver 90% of exports are destined to Europe (OEM aftermarket)Local 70%
6Major Components & Customers Electrical Wiring HarnessesTyresBrake Parts
7Recent DevelopmentsEgypt was the first country to assemble the S-class outside Germanyinvested US$ 100 million in a wholly owned facility to produce Sunny & Pickup trucksSabanci with Lasheen invested more than US$ 30 million to build 1000 coaches per annumUS$ 50 million to build 1,500 coachesPirelli invested US$ 65 million to increase Truck Tyre capacity by 50%GM Egypt added state-of-the-art paint line with an investment of US$32 million.Yr 2007 to Yr 2009 CAPEX over US$ 75 millionEgyptManufacture & export wiring harnesses from Port SaidFootprint OptimizationSoftware engineering. Started 50 engineers. Now 250Toyota announced that it will start assembling the Fortuner SUV in Egypt by early 2012
8Economic Reforms Growth in GDP Untapped Potential !!Turkey’ GDP per Capita is $5,000 and its car penetration is 70
9“1M2020”Vision 2020: Stimulate expansion of automotive vehicle production to 1.0 million vehicles per annum by 2020.Strategy based on 4 Key pillars:Adherence to International (UN ECE) homologation StandardsEncouraging local value addition through Automotive Incentive SchemeSupport Firm level competitiveness improvement programmesCapitalising on the portfolio of Free Trade Agreements
10What We Offer Competitive wages and salaries. Labour HOURLY Wages*:Low skill/ manual work € Semi-skilled € Skilled € 1.00Engineer MONTHLY Salary*:Junior Engineer € 350Senior Engineer € 800* Based on a survey conducted by EAFA/IDA on 20 auto component manufacturing companies.Under good management and with proper training, the work force exhibits adherence to a good work ethic, very low absenteeism and commitment to achieving agreed KPIs.Competitive cost of other factors of production.
11What We Offer Strong Government support: Training Development of companies’ quality systems and competitivenessExport Tax RebateRegional Trade Agreements e.g. COMESA, AFTA, Aghadir, MercosurExemption from Turkish and European Union customs duties for Egyptian exports
1210 days shipping to UK, Scandinavia 6 days to Italy, Spain, France What We OfferProximity to a big market in EuropeOEM: annual Vehicle Production > 20 million vehiclesAftermarket: replacement parts for > 250 million vehicles values at Euro 44 billion per annum10 days shipping to UK, Scandinavia6 days to Italy, Spain, FranceLow cost of shipping to EuropeUsing the new 2010 RORO line, transit time is reduced to 5.5 days to UK and 4.5 days to France