Publications

EAFA Social Media

October :: 2011 Edition

Mission

The Egyptian Automotive Feeding Industry is supplying the Car Assemblers and the after market in Egypt since 1950`s. Since 1990`s, it started its exports to the global market.
The Egyptian Auto Feeders Association (EAFA), established in 1995, assists its members and the Automotive sector in many fields: quality management, Country and Sector Image building, Export promotion, technical training, financial issues, cost analysis and cost control, business trade missions, benchmarking, inward and outward business programs, Foreign Direct Investment, lobbying, regulations and law modifications, official communications, etc.
However, the sector export to the Global is still limited.
Recently, Egypt has signed the Euro-med agreement and new opportunities have started.
The EU market is a very attractive and wide market for Export, and is open for new reliable suppliers to face the competition and enlarge the global sourcing. However, it is a tough market, targeted from Asian and Euro Med regions. The customer requirements are very high in quality, cost, delivery and specifications.
Our mission is to assist our members, the Egyptian Auto Feeders, to build their capacity and use their competitiveness edges and tools in becoming main players in the Global Automotive Parts Market.
Based on our success in supplying the local OEM, and looking for the global market, we are targeting the following segments:
  • Tear 1 suppliers, 
  • Spare Parts Mega distributors
  • SME companies for partnership and sharing JIT orders 
We believe that we can deliver the satisfaction of European customers. We know the global language of quality, Prices, JIT, and reliability.
  Overview of the current Look
There are about 335 companies working in the automotive sector in Egypt. Most of them are SME`s, employing ~ 50000 employees in total.
The total annual turn over of this sector is ~ US 530 million.
The total annual exports is ~ US 350 million, representing 8% of the total national exports, (including oil)
These figures have a great opportunity for increase.
There are 20 vehicle assemblers in Egypt. Most of them are working under license of international famous Brands.
Some companies are competing in the Global market, mainly to UK, and Germany. There are exports to MENA Region (Middle East and North Africa)
The sector covers many products, such as: Glass, Wire Harnesses, Filters, Brake Linings, Plastic Parts, Wheel Trims, Seats, Internal Trims, Radiators, Air Conditioners, Tyres, Rubber Parts, Tubes and Hoses, etc.
The sector is given great care from the Industry Modernisation program, and from the Export Promotion Programs.
There are many official and Institutional organisations which are supporting our sector, such as: General Organisation for Industrialisation, General Organisation for Investment, Federation of Egyptian Industries, Industry Modernisation Program, Organisation of Quality and Specifications, Organisation of Industry Auditing, Universities and Institutes, etc.
Egypt has some competitiveness edges in this field, such as:
  • High Technical Background Engineers
  • Reasonable Technician and Labour Skills
  • Low Cost Labour
  • Excellent Reputation with the Mother Companies working in the local market
  • Familiar with different brands and specifications, since many assemblers are working in Egypt from USA, Germany, Japan, France, Italy, Turkey, Korea, And China.
  • Some EAFA members have excellent reputation as suppliers to some EU markets
  • Freight Charges from Egypt to EU are much cheaper.
  • Delivery Time from Egypt to EU is almost half of the Far Eastern, the South African and American ones.
Our Association, together with Egyptian Automotive Manufacturers association EAMA, and The Industry Modernisation Centre in Egypt, have put a strategic plan for upgrading the automotive sector for the coming 15 years. The output of this plan has 3 objectives:
·         Attracting Foreign Direct Investment,
·         Increase Exports, and developing companies.
·         Modernize the auto feeders companies.
We believe that these factors could be used to realise a successful Export Marketing Plan.