Auto parts industry in Egypt

There are 238 suppliers and 70 thousand workers in Egyptian auto parts industry. The annual production value exceeds $ 0.455 billion, but the suppliers are competitive neither in quality nor in price.
 
The Nazif administration has introduced important reforms to bolster autos parts manufacturers by fully enforcing the implementation of the 2002 Export Promotions Law No. 155 and streamlining the customs drawback system.

While the tariff structure and exchange rate are now more conducive to automotive industries wishing to export to Egypt, car plant operators are still required to source at least 45% of parts from Egyptian suppliers. Despite strong growth in demand, continued improvement in the quality of Egyptian parts and a supportive investment environment will be crucial to the future of the local automotive industry.

Import tariffs on CBUs were reduced from 104%, to 40%, in late 2004 and are set to fall further in 2005 as part of Egypt's requirements to meet WTO targets, which will boost demand for car imports.

The Egyptian government's decision in 2004 to dramatically reduce tariffs on imported vehicles and vehicle parts has re-energized the Egyptian auto industry by improving its cost-competitiveness and encouraging foreign firms to expand their operations in Egypt.