GAC signs CKD production agreement in Egypt to boost local manufacturing, regional cooperation

Shanghai (Gasgoo)- GAC INTERNATIONAL recently signed a localized cooperation agreement with Abdul Latif Jameel during the Guangdong-Hong Kong-Macao Greater Bay Area – Africa (Egypt) Economic and Trade Cooperation Exchange Conference held in Cairo, Egypt, according to a press release GAC Group released on May 23 via its WeChat account. The two parties will jointly advance a CKD (completely knocked down) local production project, aiming to establish a new benchmark for industrial collaboration across the Middle East and Africa.

Since officially entering the Egyptian market in November 2023, GAC INTERNATIONAL and Abdul Latif Jameel have introduced models such as the EMKOO, EMPOW, GS3 EMZOOM, and GS4 through vehicle imports. Together, they have rapidly built a sales network spanning key cities including Cairo, Alexandria, and Tanta, with 14 sales and service outlets now in operation.

The newly signed CKD project will involve the construction of welding, final assembly, and vehicle testing lines, with mass production expected to begin in the second half of 2026. The project is projected to generate over $80 million in annual output and create more than 1,000 direct and indirect jobs, significantly enhancing GAC's local manufacturing and service capabilities while contributing to the upgrade of Egypt's automotive industry value chain.

Following the conference, GAC Group Chairman and General Manager Feng Xingya held high-level talks with Kamel El-Wazir, Deputy Prime Minister and Minister of Industry of Egypt. GAC Group and the Egyptian Ministry of Industry reached key consensus on deepening cooperation in the new energy vehicle (NEV) sector. Both parties engaged in practical discussions around Egypt's "National Industrial Strategy," covering local production, technology collaboration, and policy support, culminating in the signing of a strategic cooperation framework agreement that marks a new phase in China–Egypt automotive industry relations.

Mr. Feng noted that Egypt, as Africa's third-largest auto market—with a potential annual sales volume of 170,000 vehicles—and a core member of COMESA, plays a pivotal role in GAC Group's global expansion strategy. GAC Group has already introduced four gasoline-powered models to the Egyptian market, with sales approaching 1,000 units in 2024. The company is now accelerating the rollout of electric vehicles, including the AION Y (offering over 600 km of range) and the HYPTEC HT, specifically adapted to Egypt's hot and dusty climate conditions.

GAC INTERNATIONAL, the group's core platform for overseas operations, is responsible for the global promotion of its self-owned brands—Trumpchi, AION, and HYPTEC—as well as parts and components. The company has established a presence in 76 countries and regions worldwide, with subsidiaries in Hong Kong, the Middle East, and Mexico, forming a comprehensive global network spanning sales, service, and localized operations.