Optimizing Industrial Assets in Line with State Ownership Policy Document

Egyptian Prime Minister Mostafa Madbouly has stated that the revival of the decades-old state-owned carmaker, El-Nasr, showcases the nation's commitment to optimally utilizing its industrial assets in accordance with the State Ownership Policy Document.

Launched in December 2022, the document outlines the state's presence in economic sectors to enhance private sector participation in public investments.

Madbouly explained that the purpose of developing the document is to maximize the benefits from state assets, rather than selling them. He further emphasized the state's intention to establish partnerships with the private sector in managing state-owned assets.

Moreover, Madbouly asserted that Egypt can locally produce up to 70% of the components for automobile manufacturing. He noted the rising demand for cars in the Egyptian market, where half a million vehicles are sold annually. Due to population growth and economic development, this demand is projected to increase by 2030.

Established in 1960, El-Nasr was the Middle East's first automotive production firm. The carmaker began by producing affordable cars for middle and upper-middle-class families with a license from the Italian company Fiat to make household names, including Fiat (Nasr) 127, 128, 131, Polonez, and Nasr Sahin (in collaboration with Turkey).

The company also produces/assembles buses, lorries, and agricultural tractors.

In 2009, the company stopped producing passenger cars, and the government intended to liquidate it at the time. However, the company's general assembly reconsidered the decision in 2016.

A Desired Comeback

Khaled Shedid, CEO of El-Nasr, explained that the company is now focusing on expanding its bus production line. "This is a crucial step in our plan to ramp up production to full capacity," he said.

He noted that the company has already made significant strides in modernizing its infrastructure. It currently has the capacity to produce up to one bus per day and 300 buses annually.

Shedid revealed that the company's plans include producing passenger cars, commercial vehicles, and their components. He also highlighted that El-Nasr aims to double its bus production to 600 buses per year in 2025 and 1,500 by 2026, becoming a significant player in the local and regional market.

El-Nasr has partnered with Chinese automotive giant Yutong – one of the five largest companies in the global bus industry. This collaboration will enable the production of Yutong buses at El-Nasr's facilities, he clarified.

Shedid noted that the decades-old company is also working on producing the first electric bus for public transportation in Egypt by 2025 in partnership with the environment ministry.

During the ceremony, El-Nasr signed an agreement with Taiwan's Tron Technology and Emirate Your Transit to establish a $10 million Egyptian joint stock company to manufacture electric bus batteries.