The Federation of Egyptian Industries (FEI) met with car manufacturers to discuss the new regulations of the automotive directive. Key features of the law include incentives for meeting minimum requirements of domestic content, production, and exports set out by the new regulations. Incentives are in the form of a payout for every car sold worth 23.1-57.5% of the car's sales price varying by engine size. Also, a break on custom duties for imported parts will be proportional to the percentage of domestic components used to assemble the vehicle. These incentives will be paid by a fund administered by the Industrial Development Authority and deposited with the Central Bank. According to the regulations, a passenger car will need to have 45.5% domestic content in the first year, rising over time to 60% after eight years, to be considered manufactured in Egypt. In order to benefit from the incentives outlined by the law, companies producing cars with engines 1.6L or smaller must produce 20,000 cars in the first year of the directive and increase that to 60,000 after eight years. Those producing cars with larger engines must produce at least 3,000 units in year one, and 8,000 cars annually within eight years. Production quotes for medium and heavy trucks will be 20,000 in the first year with a gradual increase to 50,000 in eight years. The new law also sets import tariffs on cars at 10% in addition to imposing an “auto industry development tax", which will be 30% on cars with engines below 1600cc; 100% on cars with engines between 1600cc and 2000cc; 135% on passenger cars above 2000cc; 30% on microbuses; and 10-20% on trucks. It is not yet clear whether this will replace the sales tax. GB Auto (AUTO.CA) and General Motors have both come out in favor of the proposed law. Bavaria Group and Fiat Chrysler raised objections to the gradual increases in the domestic components mandated by the regulations, while Nissan Egypt has reportedly requested amendments. (Enterprise, Al Borsa)   GB Auto: EGP2.69 as of 24 November 2016, Rating: Buy, FV: EGP3.80 per share, MCap: USD170mn, AUTO EY / AUTO.CA