CAIRO—Egypt's automotive industry is revving up, steering away from its long-standing reliance on imports and accelerating toward a future powered by local production. A recent report from the Automotive Marketing Information Council (AMIC) reveals a landmark moment in the sector's history: locally assembled vehicles have overtaken imports in sales for the first time in decades, a shift that signals a profound rebalancing of the market.

In the first half of 2025, vehicle sales in the country almost doubled, with a staggering 96.9% year-on-year increase, bringing the total to 74,490 units. This remarkable surge is attributed to a confluence of factors, including strategic investments, expanded production lines, and fierce competition that has driven prices down by as much as 20%. According to Hussein Mostafa, former director of the Automobile Manufacturers Association, this shift is the direct result of new factories and production lines, underscoring a market maturation that has put buyers in the driver's seat.

The market's resurgence is also a testament to newfound economic stability. Raafat Masrouga, honorary chair of AMIC, notes that the recent appreciation of the Egyptian pound has restored confidence among investors and dealers, leading to more realistic pricing after a period of currency volatility. This price elasticity has proven effective, as consumers have flocked back to showrooms, keen to take advantage of the more favorable conditions.

Consumer preferences are also undergoing a dramatic evolution. While Japanese brands have long been a market staple, Chinese brands have now seized a commanding lead in passenger car sales, with a 130% increase. However, the most explosive growth was seen in the American car segment, which saw a nearly tenfold increase in sales. This shifting landscape of brand dominance, coupled with the overall market growth, positions Egypt as a strong candidate for a regional manufacturing and export hub in the coming years.

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