The year 1982 heralds SMG’s entry in the passenger car business. The company feeling confident of its capabilities and position foresaw the forthcoming opportunities in passenger Car distribution. International class car manufacturers represented in Egypt by State companies restrained to change distributors, were soon to be allowed to select their choice partner.

Under such circumstances a timid co-operation initiated with Mercedes Benz A.G., developed by 1989 into a full fledged Mercedes distributorship. "NATCO" which stands for National Automotive Company was formed in 1988 for the purpose. EAC partners own 33% of the stock.

Further development resulted in joint venture between Mercedes Benz – A.G. and NATCO to assemble Mercedes Benz passenger cars in the new formed company “Egyptian German Automotive Co. S.A.E”.

Majority shareholder is NATCO with 74percent SMG holds through parental shareholding in NATCO 24.7% shares.