China automaker SAC Motor Corp. Ltd. is planning to build a car manufacturing factory in Egypt in a bid to capture the Arab and African markets, Xinhua News Agency reported March 25, citing Egypt's trade minister.

Tarek Kabil, Egypt's minister of trade and industry, and a SAIC delegation had discussed the country's new investment law, which encourages full-car manufacturing instead of just assembling parts, Xinhua reported.

The planned factory would also help SAIC access export markets in Arab and African states that have free trade agreements with Egypt, the report noted.

Yang Xiaodong, executive director of SAIC's international department, said the company is already in touch with large Egyptian automakers regarding its distribution plans in the country.

SAIC is China's largest automaker in terms of sales, accounting for 23.3% of China's overall car sales, Xinhua said.