The Egyptian Automotive Feeding Industry is supplying the Car Assemblers and the aftermarket in Egypt since 1950`s. Since 1990`s, it started its exports to the global market.
The Egyptian Auto Feeders Association (EAFA), established in 1995, assists its members and the Automotive sector in many fields: quality management, Country and Sector Image building, export promotion, technical training, financial issues, cost analysis and cost control, business trade missions, benchmarking, inward and outward business programs, Foreign Direct Investment, lobbying, regulations and law modifications, official communications, etc.
However, the sector export to the Global is still limited.
Recently, Egypt has signed the Euro-med agreement and new opportunities have started.
The EU market is a very attractive and wide market for Export, and is open for new reliable suppliers to face the competition and enlarge the global sourcing. However, it is a tough market, targeted from Asian and Euro Med regions. The customer requirements are very high in quality, cost, delivery, and specifications.
Our mission is to assist our members, the Egyptian Auto Feeders, to build their capacity and use their competitiveness edges and tools in becoming main players in the Global Automotive Parts Market.
Based on our success in supplying the local OEM, and looking for the global market, we are targeting the following segments:
- Tear 1 suppliers,
- Spare Parts Mega distributors
- SME companies for partnership and sharing JIT orders
We believe that we can deliver the satisfaction of European customers. We know the global language of quality, Prices, JIT, and reliability.
Overview of the current Look
- There are about 335 companies working in the automotive sector in Egypt. Most of them are SME`s, employing ~ 50000 employees in total.
- The total annual turnover of this sector is ~ US 530 million.
- The total annual exports is ~ US 350 million, representing 8% of the total national exports, (including oil)
- These figures have a great opportunity for increase.
- There are 20 vehicle assemblers in Egypt. Most of them are working under the license of international famous brands.
- Some companies are competing in the global market, mainly in UK, and Germany. There are exports to MENA Region (The Middle East and North Africa)
- The sector covers many products, such as Glass, Wire Harnesses, Filters, Brake Linings, Plastic Parts, Wheel Trims, Seats, Internal Trims, Radiators, Air Conditioners, Tires, Rubber Parts, Tubes, Hoses, etc.
- The sector is given great care by the Industry Modernization Program, and the Export Promotion Programs.
- There are many official and Institutional organizations which are supporting our sector, such as the General Organization for Industrialization, General Organization for Investment, Federation of Egyptian Industries, Industry Modernization Program, Organization of Quality and Specifications, and Organization of Industry Auditing, Universities and Institutes, etc.
Egypt has some competitiveness edges in this field, such as:
- High Technical Background Engineers
- Reasonable Technician and Labor Skills
- Low-Cost Labor
- Excellent Reputation with the Mother Companies working in the local market
- Familiar with different brands and specifications, since many assemblers are working in Egypt from the USA, Germany, Japan, France, Italy, Turkey, Korea, And China.
- Some EAFA members have an excellent reputation as suppliers to some EU markets
- Freight charges from Egypt to the EU are much cheaper.
- Delivery Time from Egypt to the EU is almost half of the Far Eastern, the South African, and American ones.
Our Association, together with the Egyptian Automotive Manufacturer’s association EAMA, and The Industry Modernization Center in Egypt, have put a strategic plan for upgrading the automotive sector for the coming 15 years. The output of this plan has 3 objectives:
- Attracting Foreign Direct Investment,
- Increase Exports, and developing companies.
- Modernize the auto feeders companies.
We believe that these factors could be used to realize a successful Export Marketing Plan.
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