The world is at an environmental crucible with harmful carbon emissions within the last ten years achieving their highest level in human history. This has put climate change on the forefront of worldwide priorities, with governments, industries and native communities joining forces to scale back fossil fuel use, increase the use of other fuels, extend access to electricity, and improve energy efficiency.
Due to this fact, it is not any surprise that the automotive industry has emerged as a key stakeholder in achieving these goals, given the key impact it has on the environment. Re-inventing mobility will not be a luxury but a must to scale back carbon emissions and global warming.
This has been reflected within the dramatic disruption happening within the automotive industry within the last decade, led by stricter regulations aimed toward reducing CO2 emissions by 55% before 2030, technology advancements, and unprecedented investments in sustained mobility.
The result was an increased adoption of electrical vehicles across the globe, emerging as the popular clean technology for the longer term of mobility.
And just to provide you a way of where the market is heading:
• From 2010 to 2020, the number of electrical vehicles globally grew from 17,000 to 10 million.
• In 2021, 7 million more EVs were sold, accounting for 10% of worldwide automotive sales in that 12 months and 40% of the whole volume of EVs sold through the last ten years.
• The variety of EVs is predicted to achieve 145 million globally by 2030, growing 6 times faster than the worldwide automotive market.
• Out of the world’s top 20 vehicle manufacturers, 18 plan to scale up their EV production.
• 300$ billion dollars were invested globally to develop EVs within the last ten years and one other 515$ billion dollars in investments are planned through 2030.
On one other hand, the associated fee of operations of EVs for consumers is predicted to be 40% lower than that of our regular internal combustion vehicles.
The automotive industry in Egypt is witnessing a much-needed boost due to the federal government’s efforts to create a real dialogue with key market players, improve the business environment, establish a powerful local manufacturing base and help the industry shift towards sustainability in keeping with global practices and the wellbeing of its residents.
Shifting the automotive industry in Egypt to electric vehicles might be a significant contributor to Egypt’s National Strategy for Sustainable Development that goals to attain a 50% reduction in pollution and 42% share for renewables in its energy mix.
With almost 25% of our CO2 emissions being attributed to transportation, using environmentally sustainable mobility will considerably improve air quality and reduce solid particle pollution.
A typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per 12 months and there are on average 300,000 latest cars sold in Egypt annually. If we achieve one out of each ten cars to be electric over the following decade, we could save 1.4 million tons of CO2 emissions. We could also save USD 45 million / 12 months in healthcare expenses for each 1000 electric buses that we deploy, in keeping with a previous study by the International Finance Corporation.
Today Egypt has five most important aspects that may facilitate achieving its sustainability goals and establish a powerful EV market:
1. A young population with an even bigger appetite to take the lead in adopting latest technologies.
2. A reasonable alternative within the mid to long-run to scale back our dependence on fossil fuel.
3. With the expansion being witnessed in infrastructure and the creation of recent cities, the flexibility to set latest policy and organization goals and the commitment to international standards in urbanization.
4. The proximity and trade relations with Europe and Africa, maximizing the potential of our location and our existing free trade agreements to make Egypt a middle of excellence for EVs within the region.
5. The federal government’s dedication to localize the manufacturing of EVs in Egypt, strengthen the charging infrastructure in the following three years by constructing 1000 local charging stations, regulate charging fees, decrease taxes, and facilitate licensing.
Al Mansour Automotive Group has been a frontrunner of the Egyptian Automotive industry for the last 47 years, and today, it’s laying the inspiration to take care of its market leadership in the brand new paradigm shift happening within the automotive industry, by specializing in innovation and sustainability, and actively collaborating within the transition to EVs in Egypt.
Mansour Automotive sustainability strategy is centered on 4 key objectives:
• Develop into the EV market leader in Egypt.
• Locally assemble EVs.
• Support mobility solutions developed by Egyptian startups and innovators.
• Support renewable energy and arrange EV charging infrastructure through its group company Infinity.
Our strong belief in the longer term of fresh energy and sustained mobility is what motivated us to be a part of the presidential automobile conversion program, to work closely with the federal government on developing Egypt’s Automotive Industry Development (AIDP) Strategy with a deal with EV localization and adoption, and to be the exclusive mobility principal partner for the Climate Change Conference COP27 which can be held in Sharm El-Sheikh in November 2022
Egypt is a promising market with quite a few investment opportunities especially within the mobility sector. Moving to electric is significant, especially in light of the federal government’s efforts to scale back the burden on residents, attract further foreign investments, strengthen local manufacturing capabilities, create jobs, and lift Egypt’s innovation profile.
That is an exciting time, witnessed just once a century and we’re lucky to be a part of it. There are countless opportunities to be seized and a variety of impact to be made, and we sit up for you becoming a part of our journey!
Stay tuned for more exciting announcements during COP27!