Wednesday 15 Jan
Ezz El Arab Automotive, the exclusive distributor of Proton in Egypt, has announced the commencement of test drives for the Malaysian-made Proton Saga. The Saga is currently being assembled at the company's Egyptian factories and will undergo rigorous testing over 60,000 kilometers. These extensive test drives will pave the way for mass production and the car's official launch in Egypt within the coming weeks.
Bassem Ashmawy, General Manager of Proton Egypt at Ezz El Arab Automotive, stated that the test drives began with the support of a technical team from the parent company in Malaysia. The team arrived in Egypt last month to oversee the process and ensure the efficiency of the locally assembled Saga.
In November, Ezz El Arab
Automotive announced the opening of a Proton assembly plant on a 70,000 square
meter site in 6th of October City. This venture, a strategic partnership
between Ezz El Arab Group and Elsewedy Electric, boasts a $50 million
investment and an annual production capacity of 40,000 units.
Ashmawy added that a Malaysian
delegation arrived with specialized quality measurement equipment to ensure the
car meets rigorous standards throughout all stages of testing. These tests are
conducted by independent, specialized companies.
He explained that the Saga is
undergoing rigorous testing under diverse Egyptian road conditions, including
highways, congested urban areas, and challenging off-road environments to
ensure its durability and performance.
Ashmawy confirmed that the
locally assembled Proton Saga has been camouflaged to maintain its
confidentiality until the official launch. February will see the unveiling, the
opening of the booking process, and the announcement of the pricing, all
following confirmation that the vehicle meets the stringent standards and
specifications set by the Malaysian parent company.
He emphasized that Ezz El Arab
has finalized contracts with local suppliers to achieve a 45% local component
rate in the Proton Saga. This localization is crucial to qualify for government
incentives. Collaborating with local supply networks will expedite mass
production of the Saga and facilitate future expansion plans.
The company envisions expanding
into electric vehicle production, engine and component manufacturing, and
establishing a dedicated paint factory. This will involve increasing production
capacity from the current 40,000 units per year to 80,000.
Ashmawy indicated that while the
focus for this year remains on the Saga, Ezz El Arab plans to introduce new
Proton models to its production lines in the coming year. This project aligns
with the strategic agreement signed by the company with the Egyptian government
to contribute to the nation's automotive industry program.
In November 2023, Ezz El Arab
signed a framework agreement with the Egyptian government for the production of
automobiles. This agreement involved three key government entities: the General
Authority for Investment and Free Zones, the Green Automotive Industry
Financing Fund under the Ministry of Finance, and the Automotive Industry Unit
at the Ministry of Industry.
Ashmawy emphasized that Ezz El Arab is actively working to expedite the implementation of its automotive projects. The company is benefiting from strong government support, including assistance in sourcing supplies and equipment for local producers. Furthermore, the banking sector is providing readily available financing for the implementation of industrial projects without any significant restrictions.
