Zhejiang Geely Holding Group plans to assemble cars in Egypt in the third quarter of 2012, and to sell them locally and in the nearby markets in Africa and the Middle East.
An agreement with Egyptian company GB Auto was already signed, according to which GB Auto will assemble cars using parts shipped from China. The initial capacity at the plant will be 30,000 units annually and Emgrand EC 7 will be the first built model, designed to improve the company’s image, which is generally associated with cheap cars.
GB Auto is the biggest auto assembler and distributor in Egypt, with a market share of about 28% in 2010, having branches also in Iraq, Syria, Algeria and Jordan. The local assembly will start in July, but before that the company will first import Panda and Emerald cars to Egypt beginning with the second quarter.
Geely exported 38,000 units last year, 76% more compared to 2010, and the company projects an increase of 50% in overseas sales, meaning 57,000 units in 2012. The company sold a total of 430,000 cars in 2011, planning to deliver 460,000 units in 2012, with more than half of the additional cars coming through sales overseas.