Egypt’s electric vehicle (EV) transition preparedness was ranked 28th out of 35 countries studied in the new Global Electric Mobility Readiness Index (GEMRIX) 2023 by US consulting firm Arthur D. Little
Egypt’s electric vehicle (EV) transition preparedness was ranked 28th out of 35 countries studied in the new Global Electric Mobility Readiness Index (GEMRIX) 2023 by US consulting firm Arthur D. Little. It was categorized as a starter market after scoring 32 points out of 100.
“Despite the relatively low presence of EVs, the [Egyptian] government has been expressing strong ambitions to push for the promotion of EVs. A key reason for this ambition is the government’s commitment to achieving its sustainable development goals, which are elaborated in Egypt Vision 2030,” explained the report.
Showcasing MENA’s efforts in developing the regional e-mobility scene, the report assessed 13 countries, with Egypt ranking 10th in the Middle East.
A starter market was defined as a market with significant potential for new start-up-style entrants and early infrastructure development in a “blue ocean environment.” The report added that many of the starter markets would have some progress in establishing local EV manufacturers and an EV ecosystem.
Egypt ranked the highest in the government regulation category, with the report noting that the country’s ban on traditional petrol and diesel cars by 2040 highlights a positive outlook for the e-mobility market.
The ban is part of the country’s Vision 2030 strategy which targets a 10% reduction of greenhouse emissions from the energy sector, including oil and gas, by 2030.
The Egyptian parliament approved the creation of a new regulatory authority, the Supreme Council for Vehicle Manufacturing, responsible for setting up a new policy for the local automotive industry in July 2023 as part of efforts to improve local production.
Earlier this month, Minister of Finance stated that the government would bear 35% of costs for EV production per vehicle to support local manufacturers. Egypt aims to increase its green investments to 50% of the country’s total investments by FY2024/2025, he added.