China's FAW to build EVs in Egypt

An Egyptian company is partnering with China FAW Group, the country's second-largest state-owned automaker, to build affordable electric cars in the Middle East's most populous nation.

The news came as shares of China Evergrande's (3333) auto unit more than doubled at one point on news of a potential share sale yesterday.

A subsidiary of Egypt's GV Investments will begin local production of FAW's cheapest model in the first quarter of 2025, according to Sherif Hamouda, chairman of the Cairo-based firm. Ride-hailing services will be a key target market for the vehicles, he said.

Manufacturing will be scaled up over the next three to five years, with the goal of eventually producing cars with 65 percent locally sourced components for export to the Middle East, Africa, Europe and Latin America, Hamouda said by phone.

This came as China Evergrande New Energy Vehicle (0708) surged as much as 113 percent after it said liquidators are in talks with a potential buyer to take a stake in the company and may also extend a new line of credit to support production.

The stock closed 86 percent higher at 71 HK cents.