Egyptians seemed to have not enough awareness of the market value of electric vehicle, but things are changing thanks to an Egyptian company.
Darshal has been picked by Chinese companies Dongfeng Liuqi Motor and Vasworld Power as an agent for collecting and selling electric cars, both commercial and passenger vehicles.
Darshal plans to invest $53 million in the electric vehicle programme in Egypt, and will be the only one in the Middle East and Africa that will make electric vehicle batteries, according to Hassan el-Desoqy, its board chairman.
Vasworld Power and Darshal have gone through lengthy dialogues before agreement was reached. “Finally, the new energy vehicles will enter the Egyptian market, which has a great potential with its high purchase power and unique location as gateway to Africa and the Arab countries”, said Wang Li, CEO of Vasworld Power.
Wang said it’s quite a right time to enter the Egyptian market as China has already gained much experience in developing e-cars and the Belt and Road Initiative is facilitating close ties between the two countries.
As the world is moving toward renewable energies, the electric vehicle industry is gaining momentum in many countries and regions, with China and Europe first hitting a milestone sales of 1 million respectively in 2017 and 2018.
Desoquy has been working in the car spare parts industry in China for 12 years now, he said he can see that China and the whole Asia is advanced in the e-vehicles industry. He spoke highly of the accomplishment China has achieved in car technology and support the government has given for improving safety of batteries.
China sold only 50,000 e-vehicles in 2014, the figure soared by almost 10 times in 2018.
Darshal will introduce various kinds of vehicles, including SUVs, vans and trucks, with SUVs and trucks expected to be released within eight months and in December respectively.
Engineering Automotive Manufacturing Co, the Egyptian government’s partner of Darshal plans to start off with 500-1,000 cars as an experimental production to test the market and assess purchase power, according to Kamal Abdel Hamid, its head of QC and design division.
The factory sets a goal of annual production capacity of 10,000 vehicles in the next five years for African and Arab countries.
Local gas prices have risen recently partly due to subsidies cuts on energy amid Egypt’s economic austerity reforms, this will drive the auto customers toward less costly non-petrol vehicles, which is also more environmentally friendly.
Of course, it takes time for e-cars to take a foothold and even prevail, though Hamid is confident about high turnout of customers.