Egyptian state-owned carmaker El Nasr Automotive Manufacturing and Japan’s Nissan have signed an initial agreement to manufacture 100,000 cars a year in Egypt, said the minister for public enterprises.
The agreement is part of efforts to strengthen the proportion of locally made auto components in cars assembled in Egypt with a view to exporting the majority of the vehicles, Hesham Tawfik said.
An ultimate contract is expected to be signed within three months, according to a ministry statement, which did not give a target date for the production of 100,000 cars a year.
There have been reports of government plans to invigorate Nasr Automotive, which specialized in making local versions of Fiat cars before it stoped production shortly before Egypt’s 2011 uprising.
Its revenue rose to 5 million Egyptian pounds ($289,185) on assets of 350 million EGP in the 2016-17 financial year, from zero the previous year.