- GAC will set up a CKD localized production project in Egypt, with mass production expected in the second half of 2026.
- Egypt is the third largest automotive market in Africa with an annual sales potential of 170,000 units.
GAC Group has struck a deal to localize car assembly in Egypt, as Chinese carmakers target African markets.
GAC International, a subsidiary of GAC, announced today that it signed an agreement on May 19 with Jameel Motors, a mobility solutions provider, to advance a CKD localized production project in Egypt.
The project, which includes new production lines for welding, assembly and vehicle inspection, is expected to be in mass production in the second half of 2026, according to an announcement today.
It is expected to have an annual output value of more than $80 million and would add more than 1,000 jobs to the supply chain, GAC International said.
CKD, known as Completely Knock Down, is a trade-specific term that refers to a production method in which parts are imported in bulk kits and assembled locally in the producing country.
Localization efforts through bulk assembly usually include both CKD and SKD (Semi Knocked Down) models.
Egypt, Africa's third-largest automotive market with an annual sales potential of 170,000 units, is an important node in GAC's globalization strategy, said Feng Xingya, chairman and general manager of GAC.
GAC entered the Egyptian market in November 2023, introducing several models as imports through a partnership with Jameel.
GAC has launched four fuel models in Egypt and has 14 sales and service outlets, it said.
The Chinese carmaker is accelerating the introduction of electric vehicle (EV) models, including the Aion Y and Hyptec HT, into Egypt.
GAC International has established operations in 76 countries and regions, with subsidiaries in Hong Kong, the Middle East and Mexico.
Last month, GAC entered the Polish market with a new energy vehicle (NEV) distribution agreement with Jameel.
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