Egypt’s state-owned El Nasr Automotive boosts industry with China deal

Egypt is reviving its oldest state-owned automaker through a new partnership with China, marking a major step in the country’s push to cut its reliance on foreign vehicle imports and build a domestic manufacturing hub.

El Nasr Automotive Manufacturing Co. signed an agreement with China’s FAW Group to produce a new line of passenger cars under the traditional “Nasr” brand. The deal comes after a 15-year production freeze at the state-backed factory, which the government is now retrofitting to handle both internal combustion and electric vehicles.

Egypt revives state auto manufacturer El Nasr

Founded by presidential decree in 1960, El Nasr was once the centerpiece of Egypt’s industrial strategy, moving from basic assembly lines to full-scale vehicle manufacturing before operations ground to a halt. The revival is already showing signs of life on the factory floor.

The company produces the Nasr Sky tourist bus, which uses 63.5 percent locally sourced parts, and the Nasr Star minibus, which exceeds 70 percent local components. El Nasr has also added an electric minibus to its lineup, according to a statement from the Egyptian cabinet.

Government officials said the factory has been upgraded with new equipment to meet international technical standards. The facility is designed to manufacture its own branded models alongside vehicles for third-party private automakers looking to assemble cars locally.

Cairo prioritizes automotive sector EV transition 

Cairo has designated the automotive sector a national priority, viewing it as a critical source for job creation, export revenue, and industrial expansion. The long-term plan shifts heavily toward green transit, with the factory slated to expand into electric bus production to meet carbon-reduction goals.

The restructuring is already affecting the company’s bottom line. For the first time in decades, El Nasr returned to profitability, posting net income of EGP35 million ($715,000) for the 2024–2025 fiscal year, the cabinet said in an official expression of the company’s financial turnaround.