GAC Group recently announced a groundbreaking deal to establish a localized car assembly project in Egypt, marking a significant move by Chinese automakers to tap into the African market. The agreement, signed on May 19, between GAC International and Jameel Motors, a mobility solutions provider, paves the way for the development of a CKD (Completely Knock Down) localized production project in Egypt.
This project will involve the setup of new production lines for welding, assembly, and vehicle inspection, with mass production expected to commence in the second half of 2026. The initiative is projected to generate an annual output value exceeding $80 million and create over 1,000 jobs within the supply chain, as per GAC International’s statement.
CKD manufacturing involves importing parts in bulk kits and assembling them locally in the producing country, contributing to localization efforts. This approach typically encompasses both CKD and SKD (Semi Knocked Down) models.
Egypt, being Africa’s third-largest automotive market with a potential annual sales volume of 170,000 units, holds strategic importance in GAC’s global expansion strategy. Feng Xingya, Chairman and General Manager of GAC, emphasized the significance of Egypt as a key market for the company’s globalization objectives.
Having entered the Egyptian market in November 2023 through a partnership with Jameel, GAC introduced several models as imports. The company has since launched four fuel models in Egypt and established 14 sales and service outlets. GAC is now focusing on accelerating the introduction of electric vehicle (EV) models like the Aion Y and Hyptec HT in Egypt.
With operations spanning across 76 countries and regions and subsidiaries in Hong Kong, the Middle East, and Mexico, GAC International is actively expanding its global footprint. In a recent development, GAC ventured into the Polish market through a new energy vehicle (NEV) distribution agreement with Jameel, underscoring its commitment to driving innovation and sustainability in the automotive sector.
As GAC continues to advance its presence in global markets, the company remains at the forefront of the automotive industry’s evolution towards electrification and sustainable mobility solutions. The localization project in Egypt signifies a pivotal milestone in GAC’s journey towards establishing a strong foothold in key markets worldwide.
