In the past decade, the automotive industry has seen a dramatic disruption, led by stricter regulations aimed at reducing CO2 emissions by 55% before 2030, says CEO of Al Mansour Automotive, Ankush Arora
The world is at a crossroads; over the past ten years, global carbon emission rates have achieved its highest level in human history.
This has placed climate change at the forefront of global priorities, with governments, industries and local communities joining forces to reduce fossil fuel use, increase the use of alternative fuels, extend access to electricity, and improve energy efficiency.
Therefore, it is no surprise that the automotive industry has emerged as a key stakeholder in achieving these goals, given the major impact it has on the environment.
Re-inventing mobility is not a luxury but a must to reduce carbon emissions and global warming
In the past decade, the automotive industry has seen a dramatic disruption, led by stricter regulations aimed at reducing CO2 emissions by 55% before 2030, technology advancements, and unprecedented investments in sustained mobility.
These have led to the accelerated adoption of electric vehicles (EV) across the globe, emerging as the preferred clean technology for the future of mobility.
And just to give you a sense of where the market is heading,
- Between 2010 and 2020, the number of EVs globally have grown from around 17,000 to 10 million
- Electric vehicles accounted for 10% of global car sales in 2021, with an additional 7 million sold that year
- 2021’s EV sales accounted for 40% of the total volume of EVs sold during the last ten years
- The number of EVs is expected to reach 145 million globally by 2030, growing 6 times faster than the global automotive market
- Out of the world’s top 20 vehicle manufacturers, 18 plan to scale up their EV production
- Globally, an estimated $300 billion has been invested to develop EVs in the last ten years and another $515 billion in investments are planned through 2030
On another hand, the cost of operations of EVs for consumers is expected to be 40% less than that regular internal combustion vehicles.
Egypt’s automotive industry is witnessing a much-needed boost thanks to the government’s efforts to create a true dialogue with key market players, improve the business environment, establish a strong local manufacturing base, and help the industry shift towards sustainability in line with global practices and the wellbeing of its citizens.
Transitioning the local automotive industry to electric vehicles could be a major contributor to Egypt’s National Strategy for Sustainable Development, which aims to achieve a 50% reduction in pollution and 42% share for renewables in its energy mix.
With almost 25% of our CO2 emissions being attributed to transportation, shifting to an environmentally sustainable mobility system will considerably improve air quality and reduce solid particle pollution.
A typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year and there are on average 300,000 new cars sold in Egypt annually.
If we can achieve a rate of one out of every ten cars to be electric over the next decade, we could save 1.4 million tons of CO2 emissions annually
We could also save $45 million annually in healthcare expenses for every 1000 electric buses that we deploy, according to a previous study by the International Finance Corporation.
Today, Egypt has five main factors that will facilitate achieving its sustainability goals and establish a strong EV market,
- A young population with a bigger appetite to take the lead in adopting new technologies
- An affordable alternative in the mid to long-run to reduce our dependence on fossil fuel
- With the growth being witnessed in infrastructure and the creation of new cities, the ability to set new policy and organization goals and the commitment to international standards in urbanization
- The proximity and trade relations with Europe and Africa, maximizing the potential of our location and our existing free trade agreements to make Egypt a center of excellence for EVs in the region
- The government’s dedication to localize the manufacturing of EVs in Egypt, strengthen the charging infrastructure in the next three years by building 1000 local charging stations, regulate charging fees, decrease taxes, and facilitate licensing
Al Mansour Automotive Group has been a leader of the Egyptian automotive industry for the last 47 years, and today, it is laying the foundation to maintain its market leadership in the new paradigm shift taking place within the industry by focusing on innovation and sustainability, as well as actively taking part in the transition to EVs in Egypt.
Mansour Automotive’s sustainability strategy is centered on four key objectives
- Become the EV market leader in Egypt.
- Locally assemble EVs.
- Support mobility solutions developed by Egyptian startups and innovators.
- Support renewable energy and set up EV charging infrastructure through its group company Infinity
Our strong belief in the future of clean energy and sustained mobility is what motivated us to be part of the presidential automobile conversion program, to work closely with the government on developing Egypt’s Automotive Industry Development (AIDP) Strategy with a focus on EV localization and adoption, and to be the exclusive mobility principal partner for the Climate Change Conference COP27 which will be held in Sharm El-Sheikh in November 2022.
Egypt is a promising market with numerous investment opportunities especially in the mobility sector. Moving to electric is vital, especially in light of the government’s efforts to reduce the burden on citizens, attract further foreign investments, strengthen local manufacturing capabilities, create jobs, and raise Egypt’s innovation profile.
This is an exciting time, witnessed only once a century and we are lucky to be part of it. There are countless opportunities to be seized and a lot of impact to be made, and we look forward to you becoming part of our journey!
Stay tuned for more exciting announcements during COP27!