Toyota Egypt, the exclusive local agent for the Japanese brand in Egypt, experienced a decline in its production during the first quarter of 2026, with total production reaching 214 cars, representing a 2.8% decrease compared to 220 cars produced in the same period last year, according to a report issued by the company.
In March 2026, the company produced approximately 74 cars, an increase from 60 cars in March 2025. In February, production remained stable at 100 cars, the same figure recorded in February 2025. However, January saw a decline, with only 40 cars produced compared to 60 cars in January of the previous year.
Details of the Event
The report indicated that this drop in production has affected Egypt's position in the list of African countries producing Toyota vehicles, as it has fallen to fourth place behind South Africa, Ghana, and Kenya. Egypt's production accounted for 0.58% of Toyota's total output in Africa, having maintained second place from 2019 until the end of 2025.
In 2025, Egypt's contribution to Toyota's production in Africa was 0.75%, with 999 cars produced out of a total of 132,740 cars. In 2024, the contribution was 0.73%, with 829 cars produced from 113,730 cars across the continent.
Background & Context
The production of Toyota vehicles in Egypt is carried out by the Arab American Vehicle Company, which began its production activities in April 2012. The company primarily focuses on assembling the locally produced Toyota Fortuner model, reflecting a trend towards enhancing local production amid global economic challenges.
The automotive industry in Egypt faces multiple challenges, including shortages of raw materials and rising production costs, which impact companies' ability to meet both local and international demand. Additionally, changes in economic policies may play a role in shaping the future of this industry.
Impact & Consequences
The decline in Toyota Egypt's production is indicative of the challenges facing the automotive industry in Egypt, which may affect many related economic sectors. This downturn could also impact job opportunities in the sector, increasing pressure on the local economy.
Furthermore, this decline may affect Egypt's reputation as a production hub for vehicles in the region, necessitating urgent measures to boost local production and improve the business environment.
Regional Significance
The automotive industry is a vital sector in the Arab region, playing an important role in economic development. The decline in Toyota's production in Egypt could impact supply chains in neighboring countries, highlighting the need for regional cooperation to enhance production and distribution.
In a parallel context, Toyota Egypt is preparing to unveil its new bZ4X vehicle, which will enter the electric SUV category for the first time locally during this May, reflecting a trend towards innovation and sustainability in the automotive industry.