Car Prices Observe New Hike in Egyptian Market

In the Egyptian market, the prices of some cars have risen this week by EGP 10-18 thousand per model, following a period of decline witnessed during the past 8 months.

Car market analysts attributed the rise in prices due to random campaigns by the boycott campaigns, which caused a drop in the numbers imported and locally collected cars, in addition to the return of the phenomenon of overpricing on new and old models as well.

Supported by promotions from dealers and distributors, Toyota Corolla prices rose to EGP 342,000 compared to EGP 325,000, while Top Line recorded EGP 378,000 compared to EGP 360,000 last month.

Kia also inflated the price of Sportage Top Line Plus by EGP 12 thousand to record EGP 547,000, compared with EGP 535,000, while the prices of Opel Astra rose by EGP 10 thousand to EGP 325,000 compared to EGP 315,000 last month, and the price of Hyundai Elantra increased also by EGP 15,000.

Osama Abul-Magd, head of the Association of Automobile Dealers said that the Association has repeatedly warned of the rise in car prices to avoid boycott campaigns.

A number of social media bloggers have launched a campaign titled Let It Rust "Khaliha Tsadi" last January to boycott the purchase of new and used cars, in an attempt to push car dealers to drop prices after the European customs rate reached zero percent.

Abul-Magd added that traders had offered maximum discounts in response to the appreciation of the pound against foreign currencies during the last period.

However, the exchange rate of the Egyptian pound witnessed a drop yesterday to record EGP 16.24 to buy, and EGP 16.34 to sell.

Abu Al-Majd pointed out that the market is witnessing an increase in prices due to the return of the overprice phenomenon in several car models, that is undergoing a shortage of supply in the local market.

Overprice is an amount decided by distributors that are added to the price of the car for immediate delivery, or when choosing a specific color for the vehicle.

Ahmed Emad, a director of one of the branches of Motor One explained that there is a doubt, on the part of customers, to purchase cars in the light of the return of promotional offers for some models during the Automech showroom scheduled for December next.

Emad pointed out that European car prices have witnessed price stability due to the implementation of the General Agreement on Tariffs and Trade (GATT).

It is noteworthy that Egypt applied in January 2019 the last tranche of tariff reductions on cars from the EU and Turkey under the Egyptian-European partnership agreement, bringing the value of customs to zero.