Indian two- and three-wheeler manufacturer TVS Motor Co is in discussions with Egyptian authorities over plans to build its first manufacturing plant in Africa, a move that could create the continent’s largest motorcycle and tricycle production hub, Egypt’s Ministry of Investment said.
A delegation from TVS Motors is expected to visit Egypt in the coming weeks to carry out a detailed feasibility study covering site selection, costs, and production capacity, the ministry said in a statement. No final investment decision has yet been taken.
“The project aims to establish the largest motorcycle and tricycle manufacturing hub in Africa, leveraging the competitiveness of local labour and Egypt’s network of free-trade agreements,” the ministry said.
If realised, the plant would mark TVS Motors’ first full-scale manufacturing operation on the continent. The Indian company currently operates mainly through distribution and assembly partnerships across Africa, supplying motorcycles and three-wheelers used for personal transport, logistics and ride-hailing services.
Egypt has been positioning itself as a regional manufacturing and export base, offering incentives to foreign investors and promoting its access to African, Arab and European markets through trade agreements such as the African Continental Free Trade Area (AfCFTA), COMESA and the EU–Egypt Association Agreement.
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According to the investment ministry, TVS Motors is initially considering the production of internal combustion engine vehicles, with plans to transition gradually toward electric motorcycles and three-wheelers in line with global industry trends.
The potential investment comes as demand for two- and three-wheelers continues to rise across Africa, driven by rapid urbanisation, population growth and the expansion of informal transport and delivery services.
Market research firm Mordor Intelligence estimates that Africa’s two-wheeler market will reach about $5.55 billion in 2026 and expand to $7.29 billion by 2031, implying a compound annual growth rate of just over 7%.
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The market is dominated by Asian manufacturers, including Bajaj Auto, Honda Motor and TVS Motors, while major import destinations include Nigeria, Kenya and Ghana. Most two- and three-wheelers sold in Africa are imported as fully built units or assembled locally from imported kits, leaving limited domestic manufacturing capacity.
Analysts say a manufacturing facility in Egypt could significantly improve TVS Motors’ cost competitiveness by reducing import duties, logistics expenses and foreign exchange exposure, while allowing the company to serve multiple African markets from a single production base.
For Egypt, the project would align with broader efforts to deepen industrialisation, boost exports and create skilled manufacturing jobs. The government has prioritised automotive and mobility industries as part of its industrial development strategy, including electric vehicles and component manufacturing.
However, officials cautioned that discussions remain at a preliminary stage. No details have been disclosed regarding the size of the investment, production capacity, employment impact or project timeline.
“The project remains subject to the outcome of feasibility studies and negotiations, including the investment incentives and industrial establishment conditions offered,” the investment ministry said.
TVS Motors, which sells more than four million vehicles annually across 80 countries, has been expanding its international footprint as growth in its home market slows and competition intensifies. Africa is seen as a key long-term growth market, particularly for affordable motorcycles and three-wheelers used in commercial transport.
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If negotiations are successful, Egypt would become the first African country to host a manufacturing plant operated directly by the Indian group, potentially intensifying competition with both imported brands and a small number of emerging local manufacturers across the continent.
