Home Technology Egypt's dispute with Chinese company stalls electric car production

Egypt’s dispute with Chinese company stalls electric car production

CAIRO — The Egyptian dream of manufacturing the primary native electric car didn’t go easily. It really hit a bump, as Egypt introduced the suspension of negotiations with its Chinese accomplice, Dongfeng Motor Corporation, to supply the primary Egyptian electric car.

The Egyptian Ministry of Public Works announced in a statement on Nov. 11, 2021, that “negotiations with Dongfeng to supply the E70 electric car, in cooperation with Al Nasr Automotive Manufacturing Company, affiliated with the Ministry, have stopped.”

The ministry mentioned the explanation behind the halted negotiations was “the shortcoming to achieve an settlement with Dongfeng to sufficiently scale back costs of the imported components which might be wanted to fabricate the car and allow Al Nasr Automotive Manufacturing Company to fabricate vehicles and provide a aggressive and engaging value for customers.”

The ministry confirmed that “new channels of communication have been opened with one of many specialised world consulting places of work to establish an alternate accomplice, and optimistic outcomes are anticipated to be reached earlier than the tip of November.”

The Egyptian journey to produce the first electric car started in Yulbio in 2019 when a delegation from Dongfeng visited Cairo and met with Minister of Trade and Industry Amr Nassar, who introduced that “the company is critically contemplating the manufacture of electric vehicles in Egypt with the goal of utilizing them for transportation functions within the public sector and taxis.”

In December 2019, Egyptian Minister of Public Business Sector Hisham Tawfik confirmed after assembly with the delegation of Dongfeng that “it was agreed to supply a Chinese car beneath Al Nasr Automotive Company, which [halted operations in] 2009. The production capability of the company inside years will attain about 25,000 electric vehicles.”

The Egyptian Ministry of Public Business Sector took government steps. Tawfik introduced in June 2021 “the beginning of a trial production with the primary Egyptian electric car beginning in July or August 2022,” noting that “this production will likely be experimental with 100 vehicles till production begins with an precise capability of 25,000 electric vehicles per 12 months.”

In August 2021, Al Nasr introduced the import of 13 electric vehicles of the mannequin produced by Dongfeng to be examined in Egypt earlier than Al Nasr would start its manufacture. Al Nasr and Uber made an settlement, and vehicles had been delivered to drivers nominated by Uber after being educated by a workforce from Dongfeng on the use and charging of electric vehicles. The car was examined based on particular standards at a driving distance of as much as 30,000 kilometers per car over a interval of three to 4 months.

On Nov. 1, Tawfik revealed that changes in the agreement to fabricate electric vehicles with Dongfeng contributed to disrupting implementation.

He mentioned, “Among the obstructive elements was the change in administration of the Chinese company and the continuing negotiations concerning the pricing of the parts that make up the electric car.”

Tawfik added in press statements that “the ministry obtained a report from Uber drivers concerning the expertise of the car to be manufactured within the Egyptian market, and it was despatched to the Chinese company. But the latter has not responded but.”

He mentioned the report “contained some technical and business notes. However, negotiations with the Chinese partner took longer than anticipated and deliberate. The actual downside is the dearth of flexibility.”

After the Egyptian Ministry of Public Business Sector introduced the failure of negotiations, the pro-Egyptian media attacked Tawfik.

Ahmed Moussa, a media determine near the regime, mentioned, “Three years in the past, the federal government engaged in negotiations to fabricate an electric car. After figuring out the worth of the car, charging spots, specs, courses and car security, the Ministry of Public Business Sector out of the blue stopped negotiations with the Chinese company.”

On Nov. 17, on the TV present “Ala Mas’ouliyati,” Moussa mentioned, “Why did the ministry deal with the manufacture of an electric car to start with with out learning the concept. It would have been higher to announce this after the completion of the procedures and negotiations.”

On Nov. 15, Tawfik confirmed that “the undertaking to supply an area electric car was underway, because the ministry obtained proposals for the names of 5 electric vehicles in preparation for choosing considered one of them to be manufactured by Al Nasr Automotive Manufacturing Company.”

Tawfik explained in a statement that “an settlement was signed with the Egyptian Bright Skies Company, which makes a speciality of growing working and management techniques for electric vehicles, to supply the primary Egyptian battery for vehicles, which provides nice hope for the localization and improvement of the automotive trade in Egypt.”

For his half, the knowledgeable and former government director of the Association of Automobile Manufacturers, Maj. Gen. Hussein Mustafa, confirmed that “the state insists on implementing a undertaking to fabricate an area electric car, no matter obstacles.”

In his statements to Al-Monitor, Mustafa mentioned, “The Ministry of Public Business Sector hastened to announce the main points of the undertaking, even though negotiations with the Chinese Dongfeng Corporation haven’t been accomplished and have been stalling for a very long time.”

He added, “Cairo realizes that the longer term is for electric vehicles in gentle of the local weather change disaster. Therefore, it insists on producing them domestically. But the undertaking could face future crises, and its implementation could also be delayed because of the world value disaster, which affected the automotive sector.”

“The state must spread the culture of shopping for electric vehicles and improve charging facilities for these vehicles in addition to upkeep service facilities, that are vital for the success of the Egyptian undertaking to supply native electric vehicles,” Mustafa mentioned.

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