Market Update: Volvo Group to Export Electric Buses from Egypt

Highlights

• Swedish transport solutions giant Volvo has signed an agreement with Egyptian bus manufacturer MCV to make electric buses in Egypt for export to Europe.
• Nearly 50% of the components would be sourced locally, the two companies said, as part of efforts to enhance domestic assembly and manufacturing capabilities in the North African country. 
• The project is expected to contribute to the localization of the electric bus industry in Egypt and align with the government’s auto industry development ambitions.

Source: Zawya

Our Takeaway

Widely regarded as the last frontier for the global development of the automotive industry, Africa has become a very important market for global automakers, who are increasingly setting up manufacturing hubs on the continent. More so, investors are racing to gain lucrative footholds in all sectors of Egypt, including automobile, energy, banking, and financial services, encouraged by economic reforms and streamlined business legislation and with a huge market of more than 90 million consumers — almost half aged 20 or under.