Egypt is one of the largest automobile markets in Africa, and oil vehicles occupy the mainstream of the Egyptian automobile market。In the absence of a free trade agreement, the country's vehicle import tariffs are higher, 1.Cars with engines of less than 6 liters are subject to a 40 percent tariff.A 135% tariff is imposed on cars over six litres。However, the import tax rate for auto parts is relatively low, between 2% and 12%。In recent years, Chinese car companies have "gone to sea" in Egypt, showing the following characteristics:

　　一是Chinese automobile companies are highly competitive in the Egyptian market。Chinese cars because of fine workmanship, high product quality, good after-sales service and other factors，Among the top brands in the Egyptian automotive market;According to Egyptian official passenger car registration data，2023年，European, Chinese, Japanese and Korean car brands account for almost all of Egypt's market，Sales accounted for 35%, 26%, 22% and 25%, respectively。According to the ranking of car brands, China's Chery topped Nissan and Hyundai with a 10% market share。

　　The second is the Chinese enterprise automobileAssembly favors localization。Due to bilateral tariff agreements and other reasons, EU vehicle exports to Egypt have been exempted from tariffs since 2019, but for Chinese auto brands, there is no relevant tariff agreement, and the price advantage of vehicle exports to Egypt is not good。However, due to the lower tariff rate of car engines and other components than the vehicle tax rate, Chery, BYD, Changan and other car companies in order to improve price competitiveness, the use of parts imported and then local assembly of the way to carry out production。In other words, after the implementation of local assembly, the automobile tariff can be reduced from 40% to about 7% to 9%。

　　Third, tariff benefitsDevelopment of new energy vehicles。In recent years, the Egyptian government is committed to promoting the development of the new energy automobile industry, and new energy vehicles can enjoy "zero tariff" treatment regardless of whether they are imported into Egypt or assembled locally, which is greatly conducive to the development of new energy vehicles in Egypt。It is understood that a number of new energy vehicle companies have planned to introduce new energy vehicles to Egypt。

　　(Source: Shenzhen Municipal Trade Promotion Commission Liaison Office in Egypt)