By ; Bakinam Khaled
Raya Auto, a subsidiary of Raya Holding for Financial Investments, has announced a major strategic partnership with XPENG, a leading manufacturer and developer of advanced electric vehicles, with which Raya Auto shall serve as the exclusive agent for XPENG cars in Egypt. This collaboration marks a milestone for XPENG, as it is their first venture of this nature in Africa. The partnership aims to introduce a range of advanced EVs to the Egyptian market, meeting European specifications, during the H1 of 2024, exclusively through Raya Auto.
The announcement was made at a press conference on Sunday, January 21, at the EDGE Innovation Center. The event was attended by key leaders of Raya Holding Group, its subsidiary Raya Auto, and strategic partner XPENG, including Mr. Wang Ke, regional manager.
As part of the collaboration, Raya Auto is set to invest a significant investment to introduce the cutting-edge EVs to the Egyptian market in 2024–2025. This collaboration supports the Egyptian government's efforts to promote the electric car industry and encourage widespread adoption. It is also in line with Egypt's 2030 vision and its dedication to achieving sustainability targets and fulfilling international commitments made during COP27, held in Sharm El-Sheikh.
The collaboration will introduce the G9, G6, and P7i advanced XPENG cars. These cars have top-notch safety and luxurious features. These models can travel 500–700 km per single charge. After-sales services will be provided through 3 service center across Cairo.The introduction of Chinese electric cars with European specifications in Egypt is an unprecedented development in the Egyptian automotive market, offering a remarkable user experience. With the charging stations in Egypt designed following the European protocol, users can now enjoy fast charging services that can quickly charge their batteries up to 80% capacity in just 25 minutes. This means more convenience and efficiency for users.
Medhat Khalil, Founder and Chairman of Raya Holding for Financial Investments, highlighted the significance of expanding investments in advanced EV through their subsidiary, Raya Auto. “This strategic move showcases the group's commitment to providing top-notch products and services that adhere to global standards across our various lines of business and investment areas. We are extremely excited about our partnership with XPENG, which enables us to bring their state-of-the-art products to Egypt, marking their inaugural expansion into Africa. Through this partnership, we are reinforcing our dedication to encouraging the use of electric vehicles and reducing dependence on fossil fuels, in line with Egypt's 2023 strategy,” he stated.
Mohamed El-Naggar, CEO of Raya Auto, expressed his satisfaction with signing the partnership after two years of coordination efforts. “We are pleased to have been chosen as XPENG's exclusive partner. This achievement solidifies our position as a leader in the Egyptian market for EVs. At Raya Auto, we are committed to providing state-of-the-art EV solutions that prioritize the environment, deliver an exceptional experience, high efficiency, and impressive capabilities. These efforts demonstrate our dedication to promoting environmental sustainability and minimizing carbon emissions.”
XPENG is a NYSE-listed, globally renowned company in the future automotive tech sector. It has gained recognition on a global scale for its expertise in EV production and is widely regarded as one of Tesla's top rivals for its innovative self-driving and driver assistance technologies. In addition, Volkswagen acquired 5% of its total shares by the end of 2023.
“Raya and XPENG will coordinate to offer maintenance services and an approved warranty for eight years, or 160,000 kilometers. In its first year, the company plans to open three top-tier accredited show rooms and service centers in the Fifth Settlement and Sheikh Zayed City, along with the main headquarters in Katameya, Cairo. We will also offer home charger installation services in partnership with XPENG, ensuring the best possible user experience for our customers,” El-Naggar added.
This strategic move entails the importation of fully assembled cars (CBU), taking advantage of the support provided by the Egyptian government to encourage electric vehicles. Based on the government regulations that electric vehicles are not subject to customs duties. Additionally, they have taken steps to promote local manufacturing through various measures. The CEO mentioned that Raya Auto and XPENG have been considering the possibility of investing in local car assembly, pending any changes in government regulations.
