Where are the prices of cars in the market, what is new, and why are prices still high despite Egypt’s beginning of industrialization? Let’s see what the story is.
The automotive sector in Egypt has become the talk of the economic community in Egypt and the region, and this is due to the great renaissance that is taking place in these two days and the opening of 3 huge factories, including Al-Nasr Automotive, Burton, and Exceed, in addition to the expansion of the production of car spare parts and components within a huge plan to localize this strategic industry, but of course the production plans are still in place. I did not hear about the market because the factories started producing, but in the near term, new cars will enter the market and create a balance in the supply, and thus prices will come down again.
Ok, what is happening in the car market now?
To be frank, the car market in Egypt is still facing challenges, putting pressure on the supply, and making agents continue to apply overprices or add an unannounced increase to the prices of the models available to them. This is due to the lack of supply, as we said, for many reasons, including stopping imports more than once, which creates a large increase in the accumulated demand. .
Market experts believe that the most important crises in the sector were the difficulty of importing cars starting in mid-2024, the partial halt of pre-registration of shipments on the government “Nafza” platform, and the decline in demand from customers, which caused sales to stagnate, but finally the Central Bank of Egypt resolved this crisis. He directed the banks to provide dollars to importers of cars and 12 other goods that were prohibited from being imported as part of the plan to rationalize the dollar and stop the currency bleeding, but after the availability of the American currency, the importers resumed importing, but this takes time. Of course, or something called the import cycle, which can last 3 months from the beginning of the contract until the shipments reach the Egyptian market and are distributed to agents, and here the prices will certainly decrease with the increase in supply.
A number of agents and members of the Automotive Division of the Federation of Egyptian Chambers of Commerce see that the application of Overprice on car sales is still continuing despite the decline in purchase orders, as a result of a further decrease in supply and the percentage of unofficial increases in car prices varying from one model to another, according to the availability of stock at dealers and demand from the side. Customers.
Head of the Car Agents, Distributors and Dealers Division at the Cairo Chamber of Commerce, Nour Darwish, said that the car market in Egypt is currently suffering from stagflation, which means a noticeable increase in prices, despite the significant decline in demand.
Member of the Automotive Division of the Federation of Chambers of Commerce, Alaa Al-Sabaa, also said that the increases that dealers add to some car models are a natural result of competition and high demand with the severe decline in supply. He came back and said that the “overprice” does not exceed 10% of the car’s value and varies from one car to another depending on the model. It increases as much as the car is luxury and is available in a limited way in the market, and in this case it reaches a million pounds and sometimes more.
