UFO

AUTOMOTIVE
Electric car manufacturing - Gulf
Country
 2023
New energy electric vehicle KD Car assembly plant business plan

EGYPT
01 02 03
About US Market analysis Problems and solutions

04 05 06
Project profit model Financing plan Returns & Exit

07 Attached file
 1.1 ， Introduction

UFO Automotive , established at 2017 under UFO motors name,

then at 2022 as UFO Automotive . The company is one of family
business include many companies in different fields like satellite
finder/receiver/technology business , Data center business ,
printing /copying supplies and automotive business and more...

UFO Automotive focus on manufacturing electric cars in Egypt

, established with registered capital 15,000,000 EGP.
1.2 ，Project history

2015 The idea

Study the market for
2017 Firs Move
Traveling to China to visit
2019 Negotiations
Negotiate with different
electric cars electric car factories electric car suppliers

Factory
2022 establish
Start prepare factory
2021 Choose models
Negotiation for choose the
2020 Sign Contract
We signed contract with

2023 building and start

production
suitable models for the
market and order samples
our current partner for
provide CBU/CKD for
electric cars
 Place

West Gerga industrial area

Sohag governorate
Our Factory

Factory Building

Area 10500 square meters

The workshop Area 7200 square meters

Service buildings

Administrative building
mosque
Showroom building
Restaurant for workers
 Benefits of Factory Location
Transportation
Our factory near of many important
ways for store and transport goods.
Like dry port , new electric railways
train , main roads , seaports

Workers
Availability of workers as our factory
near of population areas 4km

Airport
Our factory near from SOHAG
international airport 7km
 Why electric cars?
Battery Technology

Battery technology and researches every day provide more suitable solutions to make
electric car usage more acceptable between users . Technology
Electric cars technology growing
so fast

Will end The future

Reduce R&Dfor ICE Environment

All countries decided to inhibit
usage of gasoline cars by 2050.
Most of factories will stop production of gasoline cars to obey the rules of governments all
worldwide to safe the earth and the reduce the global warming effect.
 PUSH for electric

Egyptian government make strategy for localize manufacturing of electric cars in

Egypt and offer many benefits for the manufacturers and also benefits for
exporters
Also for the Egypt market , our government offer the following for encourage electric cars

$$$ 3000-45000
Subsidy for Charging Reduce Taxon
buyers stations registration
 500,000
Production capacity plan
First year
Produce 1000 units/year from 2 models , with localization for components 12000
Second year
According to the market demand we can double or triple production capacity
and add new models. And start localizing Battery production

Third year
We plan to add many models according to market demand and increase
capacity more than 12000 unit/year

Fourth year
We plan to establish extra factories to reach our target 500,000 units/year .
 Export Plan
Localization
We have plan to export our cars

80% to Europe, south America and

Africa.
By manufacturing the car battery in Egypt and
localize some main components we can reach the 4

target of 80% localized parts.

Africa Europe and Asia South America

55% 25% 20%

 Model 1

power 135-160 kw Dimensions 4602*1900*1645 mm

Battery 55.5kwh-76.8kwh Max speed 160 km/h

 Model 2

power 55 kw Dimensions 3740*1655*1550 mm

Battery 32.54-38.56kwh Max speed 130 km/h

 Model 3

power 55 kw Dimensions 3840*1742*1545 mm

Battery 30.0-43.0kwh Max speed 130 km/h

1.3 Why UFO Automotive
3- R&D
1- sell channels We have many plans for the
As a manufacturer we have a lot of sell future including localization
channels and opportunity to sell big of battery manufacturing in
quantities which can achieve the project aims Egypt. Beside we will make
cooperation with many
science and engineering
2- Quick start
institutions for develop
Our factory workshop is ready for receive the many solution for our
production line to start production within 4-5
electric cars.
months after confirm production line details.
4- Government support
As manufacturer Egypt
government offer great
support for our project.
2. Market Analysis

2.1 Egypt car market details

EGYPT population about 105,000,000. They live on about 6%

from Egypt Land. The registered vehicles are more than
12,000,000 vehicles (2018 info) the private cars are more
than 7,000,000 cars.
In the last 5 years Egypt government made about 30 new
cities of the 4th generation, which have the infrastructure for
EV chargers. These new cities add more than 6% of the land.
So, the population will be on more than 12% of Egypt land.
That means the car market will increase in the next years by
double at least.
2. Market Analysis

2.2 sell rate in the market 2020 (gasoline)

By the Oct 2020 the
private car sell
quantity in 10 months
in 2020 reached about
128,000 passenger
cars. The following
diagram show the
models with the
highest sells rate
(1600cc motor).
 2. Market Analysis
2.3 Most cars sells rate in the market for the first quarter of
2021 (gasoline)
By the end of Feb 2021, the
private car sell quantity in 2
months of 2021 and by the
end of the first 5 months the
registered private cars reach
112000 cars. with expected
to sell 250,000 cars by the
end of 2021. The following
diagram show the models
with the highest sells rate
(1600cc motor). passengers'
cars have increase 71% for
the same period of 2020.
2. Market Analysis
2. Market Analysis
2. Market Analysis
2.4 Electric cars in Egypt
Second reason Third reason
Reasons : First reason

Most of electric cars in Egypt

are imported by individual
Prices Warranty Trust
users or some importers under Most of customers afraid Customer buy the
Prices are high . We
the individual use for to get imported electri c car when he trust
have solve for the
customers . More than cars because of warranty in the Brand . We
price problem to not available, also no
1000units are imported at the will offer all
offer our cars with spare parts or after sale
last 2 years. Expected 5 times reasons to make
suitable price for service. We will cover all
of that number is required for that points and produce to customers trust
the customers.
Egypt market at 2024 . But the customers good warranty in our brand and
Our prices will be
customers have reasons to and good aftersale s our cars. We have
lower than gasoline
wait and not buy that service with low cost spare plan for that.
cars for the same parts.
individual imported units. category
 More details
Prices Warranty
Our cars prices will cover range Car warranty 4 years or 150,000km
300,000EGP to 900,000EGP for and the battery warranty
different models and versions 200,000km or 8 years.
which meet the requirements for Spare parts will sell with its cost
different categories . . without profit .

Reasons

Trust Competitors
1- we have factory so we will 2 official agents for EV in Egypt .
continue in the market Models and prices of them will be
2- offer all spare parts with big higher of our cars prices .
quantity and easy reach and good Even they reduce the prices , Egypt
prices market needs a lot of EV quantity
3- good and cheap after sale in the market and we cant supply
service all required quantity alone.
 2. Market Analysis Increase sell rate
1- lower the car price
2- offer different
2.5 Electric cars sell forecast versions with different
range option
Expected sell rate of our production different versions 3- offer swap function
80% and spread swap
station
Z03 500-600km 15%
4- use Europe protocol
Z03 300-400km 35% charging port
YOUNG/U2 5- 4 companies spread
200-300km 50% charging stations and
government plan
43000 stations by 2030
Range Swap Locations 6- parts localization
and export our cars

Reduce sell rate

20% 1- problem of
exchange rate
2- low availability of
50% 70% 60% charging stations at
Range 300km Swap function Big cities current time
Expected 50% of the Expected 70% of Expected 60% of our
sold cars will be with customers will want to sold cars will be in big
range 300km buy our cars with swap cities specially After we
function spread swap stations
3. Market Problems and Solutions

Market Problems and Difficulties

Importing complete assembled cars has got
Building local vehicle assembly
some drawbacks and difficulties such as: manufacturing plant
In the field of electric vehicles, china is in
a. No support from government for USD leading position in the world in terms of
b. Lack of after sales services scientific and technological input,
c. Lack of self logo technological innovation, industrial chain
d. Lack of governement support construction, manufacturing capacity,
e. Lack of attracting local and international production and sales volume and aslo
investors. international market. With these technological
f. Higher transportation cost adavantages building local assembly plants
can solve most of the problems listed above
such as:

a. Reduce transportation cost

b. Create job for locals and improve
technological skills
c. After sales services
d. Attracting local investors
e. Get full support from government
4. Project profit model

Model Quantity Cost average VAT TAX at Average ROI for ROI for total
3 months cycle customs profit 10% working investment
capital
Z03 500 2,500,000 500,000 2,400

Young / U2 500 1,250,000 250,000 1,200

Total 1000 3,750,000 750,000 1,800 1,800,000 1,800,000

Workshop and 1 3,500,000 3,500,000 0

land
Production line 2 2,000,000 2,400,000 0

Working costs 600,000 0

Total 11,000,000 0 6 years

investment
Working 5,100,000 0 2.84 years
capital
FINANCIAL ANALYSIS---Overseas chain car factory profit model
year 1 2 3 4 5 6 7 8 9 10

investment 11 m$ 0 0 0 0 0 0 0 0 0

Capacity 1000 1400 1960 2744 3841 4650 4650 4650 4650 4650

Avg. Profit 1.80 2.52 3.528 4.939 6.914 8.370 8.370 8.370 8.370 8.370
m$ m$ m$ m$ m$ m$ m$ m$ m$ m$
withdraw 0 0 0 0 0 8.370 8.370 8.370 8.370 8.370
m$ m$ m$ m$ m$

Investment return profit balance point

1- Above table shows the start investment for 1000 units/year
and using the profit for 5 years to increase the capacity to reach
the maximum capacity for the production line.
2- In this case the investment return will be after 6.3 years
3- the share real value will increase by 2.5% as the company real
assets will be increased from 11 m$ to 27,425,000$.
4- the value of the shares can be sold at the new value after 6
years , as the ROI will be 3.28 years. Which is very good rate for
the business .
5- we can reduce the ROI time by get more investment and work
3 shifts on the same production line .
 Profit model advantage and disadvantage risk analysis
SWOT risk Analysis of new energy vehicle KD assembly plant project SWOT
(Strength) （Weakness）
1, China's automotive technology world No.1, the introduction of 1. New energy electric vehicles are capital-intensive and
China's advanced electric vehicle technology, the starting point of the technology-intensive projects. With the deepening of the
project is higher. project, large funds are needed to accelerate the
2. Joint venture cooperation mode, introducing the successful development of the project.
experience of China's automobile industry, linking China's new energy
automobile industry chain, and promoting the localization of electric 2, at present, the Egyptian electric vehicle market is in its
vehicles in Egypt. infancy, and the maturity of the electric vehicle market has
3. Successful experience in overseas investment, such as aprocess.
complementary joint venture mode, customized product design and
rolling development according to local conditions.
4, the Egyptian government's strong support for the automotive KD
project, including import tariff reduction, electric vehicle subsidies,
(Opportunity） （Threat）
1, development The Egyptian government's strong need for 1. Local second-hand car policies compete with overseas
industrialization provides a market and opportunity for our "overseas chain car assembly plants.
chain of automobile assembly plants" 2. Competition from well-known overseas car companies.
2. Saudi Arabia's Vision 2030 has enhanced the popularity of electric
vehicles in Gulf countries and created conditions for Gulf oil capital to
enter Egypt's new energy vehicle projects.
3. Opportunities outweigh risks
 5. Financing plan
Shares
pay share money

EGYPT 50% 40% 5.5 m$

Founder/Manager 0 15% 0
EGYPT
China 25% 20% 2.75 m$

Technology transfer 0 5% 0
china
investors 25% 20% 2.75 m$

TOTAL 100% 100% 11.00 m$

EGYPT inv EGYPT Mang China inv China Tech Investors

Total shares will be

EGYPT 55% of shares and pay 50% of the investment ( land/buildings + costs + components)
China 25% of shares and pay 25% of the investment ( production line + components )
Investors 20% of shares and pay 25% of the investment ( production line + components + capital )
5. Financing plan (more details)

pay share money

EGYPT 1- 3.50 m$ ( land + building ) 55% 5.5 m$

2- 2.00 m$ Components

China 1- 1.15 m$ production line 25% 2.75 m$

2- 1.00 m$ components
3- 0.60 m$ working capital

Investors 1- 1.25 m$ production line 20% 2.75 m$

2- 1.50 m$ components

TOTAL 11,000,000 $ 100% 11.00 m$

 6. Returns and exit methods of venture capital firms ：
IPO ：New energy electric vehicles are the direction of future
automotive development, and from the data of the world's major bond Note:
exchanges, electric vehicles have been sought after by the capital Before investing, all
market. By going public, investment companies can make huge returns.
investors will consider the
success rate of the project,
M&a share transfer: When the company enters the mass production
risk, return, and especially
stage, the company shows the growth potential, the company's share
price will increase, if there is a merger opportunity, the original shares the exit mechanism. Until
will have the opportunity to sell at a premium. Especially in the Gulf these concerns are resolved,
countries have to promote industrialization, new energy vehicles in the no investor will actually
Middle East increasingly hot situation, premium mergers and
acquisitions to seize the opportunity is a high probability event contribute. In general, it is
necessary to communicate
Share repurchase is an exit way for a company to repurchase the shares enough to find a balance
of management and shareholders from investors that is acceptable to both
A company liquidation exit is away to exit an investment in an
parties.
existing facility.
 Equity financing refers to the financing method in which the shareholders of the
enterprise are willing to give up part of the ownership of the enterprise and
introduce new shareholders through the way of enterprise capital increase.

There are four types of equity financing: Note:

1. Equity transaction financing, that is, financing For start-ups, it is suitable for
through equity transfer and purchase;
capital increase financing, that
2. equity pledge financing, that is, to pledge equity to
others for financing;
is, financing by increasing the
3. Private equity financing, that is, raising funds by registered capital of the
issuing shares; company
4. Capital increase financing, that is, financing by
increasing the registered capital of the company.
 HOW INVESTORS JOIN THIS PROJECT AND
HOW MUCH IS EXPECTED TO INVEST.
Establish new company New
Establish new company with shares company
belong to China partner and China Main Company
investors , this company will have UFO Automotive
45% of EGYPT main company .
partner
for car
and manufacturing
investors
(55%)
company
Exit/returns
(45%) 1- go public
2- increase
Payment shares
45% of UFO Start 3- increase
China 2.75m$
New company Automotive goes production capital
Investors 2.75m$
establish to investors Co. 4- sell shares
 7. Attached files

1
Feasibility study (AR)
Arabic language

2
Feasibility study (EN)
English language

3 Schedule
Suggested schedule for starting project
please Check
Attached
4
Sell channels / developments / new ideas
After sign contracts
files
In the folder
CONTACTS

YP S O H G G V E E A TE
WE S NDUS ER AL A