Chinese EV makers look to Africa as rivalry with US, Europe heats up

Egypt among countries drawing investments from China, with BAIC and Zeekr the latest to announce plans to enter the market

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Geely’s premium EV maker Zeekr has signed a deal with Egyptian International Motors to build a sales and service network in Egypt. Photo: Handout

Published: 12:00pm, 10 Nov 2024Updated: 4:34pm, 11 Nov 2024

Chinese electric vehicle makers are opening flagship stores and assembly plants in Africa as they look to expand on the continent and circumvent tariffs and other import restrictions imposed by the US and Europe.

State-owned carmaker BAIC Group and Zeekr, Geely Auto’s premium EV maker, have both announced plans to enter Egypt – a key location for companies looking to tap into the Middle East and Africa.

By the end of next year, BAIC Group is expected to start producing 20,000 electric vehicles annually at an assembly plant it is establishing in Egypt. That will increase to 50,000 units by its fifth year in a deal with Alkan Auto, a subsidiary of Egyptian International Motors (EIM Group).

The deal last week was witnessed by Egypt’s Deputy Prime Minister for Industrial Development Kamel al-Wazir, who is also industry and transport minister. He said the investment was in line with Egyptian President Abdel-Fattah el-Sisi’s aim to turn the North African country into a regional industrial centre and localise the car industry.

Al-Wazir said the General Authority for Industrial Development had allocated 120,000 sq metres of land for the project.

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Besides meeting domestic demand, the plant will export to other African countries and to the Middle East, taking advantage of Egypt’s location at the junction of Asia, Africa and Europe. More than 10 per cent of global trade or thousands of ships pass annually through Egypt’s Suez Canal, which connects the Mediterranean to the Red Sea and is the shortest sea link between Asia and Europe, Beijing’s biggest market.