1. Opportunities in the Automotive Industry in Egypt

2. Overview of Vehicle Production
Components Industry
Automotive Strategy
“1M2020”
What Egypt has to Offer

3. Vehicle Assemblers in Egypt Egyptian Companies Private & Public
100% Foreign Ownership
Joint Ventures
Passenger Cars
Commercial Vehicles
Gorica Egypt
Automotive Eng. Co.

4. Rapid Growth Vehicle Registrations
In thousands of Vehicles
15%
262
-21%
21%
250
32%
228
206
42%
172
68%
121 72
Projected
Source: AMIC Reports

5. Auto Components Industry in Egypt
The Egyptian automotive components production is estimated at US$ 1.3 billion:
US$ 900 million serving the OE local
assembly and the aftermarket for 4.1 million vehicles
Annual growth rate is 14.8%
2. US$400 million Exports
Over 90% of exports are destined to Europe (OEM aftermarket)
Local 70%

6. Major Components & Customers
Electrical Wiring Harnesses
Tyres
Brake Parts

7. Recent Developments
Egypt was the first country to assemble the S-class outside Germany
invested US$ 100 million in a wholly owned facility to produce Sunny & Pickup trucks
Sabanci with Lasheen invested more than US$ 30 million to build 1000 coaches per annum
US$ 50 million to build 1,500 coaches
Pirelli 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 million
Egypt
Manufacture & export wiring harnesses from Port Said
Footprint Optimization
Software engineering. Started 50 engineers. Now 250
Toyota announced that it will start assembling the Fortuner SUV in Egypt by early 2012

8. Economic 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 Standards
Encouraging local value addition through Automotive Incentive Scheme
Support Firm level competitiveness improvement programmes
Capitalising on the portfolio of Free Trade Agreements

10. What We Offer Competitive wages and salaries.
Labour HOURLY Wages*:
Low skill/ manual work € Semi-skilled € Skilled € 1.00
Engineer MONTHLY Salary*:
Junior Engineer € 350
Senior 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.

11. What We Offer Strong Government support: Training
Development of companies’ quality systems and competitiveness
Export Tax Rebate
Regional Trade Agreements e.g. COMESA, AFTA, Aghadir, Mercosur
Exemption from Turkish and European Union customs duties for Egyptian exports

12. 10 days shipping to UK, Scandinavia 6 days to Italy, Spain, France
What We Offer
Proximity to a big market in Europe
OEM: annual Vehicle Production > 20 million vehicles
Aftermarket: replacement parts for > 250 million vehicles values at Euro 44 billion per annum
10 days shipping to UK, Scandinavia
6 days to Italy, Spain, France
Low cost of shipping to Europe
Using the new 2010 RORO line, transit time is reduced to 5.5 days to UK and 4.5 days to France

13. THANK YOU