Trade and Industry Minister Tarek Kabil has issued a decree increasing the local component requirement for local car manufacturing to 46 percent, according to a statement from the ministry on Sunday.
Previously only 45 percent of components of locally assembled cars had to be sourced domestically.
The decision also sets the local assembly requirement at 28 percent for a car to qualify as a locally manufactured car, a percentage set to be reduced by 1 percent every year.
Companies have a year to comply with the new criteria.
“This decision targets a real deepening of this vital industry according to fair and transparent criteria, as current percentages [45 percent] do not reflect the actual reality and will not help in achieving the ministry s targets to establish a real manufacturing industry based on manufacturing and not assembly,” the minister said.
The decision comes in light of the ministry s national strategy to encourage car manufacturing.
Egypt is also set to cancel tariffs on imported European automobiles by January 2019.
