- GAC and Abdul Latif Jameel to launch CKD vehicle production by 2026.
- The project will generate $80M annually and create over 1,000 jobs.
- Strategic deal boosts local manufacturing and NEV collaboration in Egypt.
GAC INTERNATIONAL has recently entered into a localized partnership agreement with Abdul Latif Jameel at the Guangdong-Hong Kong-Macao Greater Bay Area - Africa (Egypt) Economic and Trade Cooperation Exchange Conference in Cairo, Egypt. The two parties will collaboratively promote a CKD (completely knocked down) local manufacturing initiative, with the goal of setting a new standard for industrial partnership throughout the Middle East and Africa.
Having officially launched in the Egyptian market in November 2023, GAC INTERNATIONAL and Abdul Latif Jameel have rolled out models like the EMKOO, EMPOW, GS3 EMZOOM, and GS4 via vehicle imports. They have quickly established a sales network that covers major cities such as Cairo, Alexandria, and Tanta, now operating 14 sales and service locations.
The recently signed CKD project will entail the establishment of welding, final assembly, and vehicle testing lines, with mass production anticipated to start in the latter half of 2026. The initiative is expected to yield over $80 million in yearly production and produce over 1,000 direct and indirect jobs, greatly improving GAC's local manufacturing and service abilities while aiding in the advancement of Egypt's automotive industry value chain.
Also Read: The Way Forward for Lightweight and Fuel-efficient Auto Parts
After the conference, Feng Xingya, GAC Group Chairman and General Manager conducted high-level discussions with Kamel El-Wazir, Deputy Prime Minister and Minister of Industry in Egypt. GAC Group and the Egyptian Ministry of Industry achieved important agreement on enhancing collaboration in the new energy vehicle (NEV) industry. Both sides participated in pragmatic talks regarding Egypt's "National Industrial Strategy," focusing on domestic manufacturing, technology partnerships, and policy assistance, resulting in the signing of a strategic cooperation framework agreement that signifies a new era in China-Egypt automotive industry relations.
Mr. Feng emphasized that Egypt, being Africa's third-largest automotive market - with an estimated yearly sales volume of 170,000 cars - and a key participant in COMESA, is essential to GAC Group's worldwide growth strategy. GAC Group has launched four gasoline-powered models in the Egyptian market, with sales nearing 1,000 units by 2024. The firm is now speeding up the launch of electric vehicles, such as the AION Y (providing more than 600 km of range) and the HYPTEC HT, tailored for the hot and dusty climate of Egypt.