Egypt’s EV drive fuels growth in automotive logistics

Egypt is accelerating plans to attract global carmakers as part of a wider strategy to localise electric vehicle (EV) production and strengthen automotive logistics and supply chains.

Prime Minister Mostafa Madbouly said the government is prioritising the National Automotive Manufacturing Programme to support clean energy, reduce fuel imports, and build a strong industrial base. The move is expected to increase demand for automotive logistics, including the movement of components, batteries, and finished vehicles across ports, free zones, and regional markets.

Free zones are emerging as key logistics hubs for this strategy. By October 2025, total investment in free zone projects reached $38.5bn, with more than 1,200 projects covering industrial, storage, and service activities. These zones support large-scale warehousing, assembly operations, and value-added automotive logistics services.

In 2024, commodity exports from free zones reached $11bn, while service exports stood at $7bn, highlighting their growing role in Egypt’s export supply chain. Most projects are located across nine public free zones, creating logistics clusters linked to ports, road networks, and industrial cities.

Officials said several global companies have submitted proposals to invest in the automotive sector. The government is reviewing incentives to support local manufacturing, sustainable transport, and integrated automotive logistics, positioning Egypt as a regional EV and export gateway.