2014-01-03 11:38:47 - Recently published research from Business Monitor International, "Egypt Autos Report Q1 2014", is now available at Fast Market Research
Latest data from Egypt's Automotive Marketing Information Council (AMIC) show a 4.8% year-on-year decline in passenger car sales, to 108,521 units, for the first 10 months of 2013. However, reports of improved business and consumer sentiment, as well as upbeat sales reports from leading dealers, suggest that the market will be in a position to stage a recovery in 2014, in line with BMI's forecast for 3.0% growth, following a 6.0% decline in 2013.
The commercial vehicle segment, meanwhile, will benefit from an expected uptick in tourist arrivals and, accordingly, we expect the bus segment to be an outperformer.
Full Report Details at
The increasing availability of affordable brands, as well as pent-up demand from purchases delayed in 2013 and
low base effects, should set the scene for a strong start to 2014. Political risk will be the biggest ongoing threat to consumer sentiment, especially with a planned referendum on an amended constitution in January 2014. There are encouraging signs, however, including the lifting of the nightly curfew in Cairo in November, and the easing of travel restrictions by several countries, particularly in Europe, which is a major source of tourist traffic.
We also see an improving picture for production. The country's PMI reading for November 2013 of 52.5 was its highest in the 32 months of the survey's existence and only the seventh time it has exceeded 50. Coupled with Toyota Motor's assurance that it intends to commit to manufacturing in the country, this suggests a slightly more optimistic outlook going forward. While not giving more details or a timeframe, Toyota said in a statement to World Bulletin that it intends to expand globally including Egypt, 'with the expectation that Toyota will invest more in Egypt over the coming period'.
Other investment has come from local dealer group Wamco Motors, which announced in December 2013 that it has acquired two new car franchises to add to its range, which currently includes China's FAW. Wamco will also be taking its own steps into the after-sales business, as it opens a new EGP15mn service centre in 2014. With this, the company aims to take advantage of the growth in demand for local parts, which is expected following a near doubling of imported spare parts prices. Also looking to take advantage of this growth in the domestic after-sales market is Giza National Automotive, which opened what it considers to be the country's largest sales, service and spare parts centre in November 2013.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Egypt Autos Production, 2010-2017
- Table: Egypt Autos Sales, 2010-2017
- Table: Egypt Autos Trade, 2010-2017
- Economic Analysis
- Positive Long-Term Outlook Remains
- Table: Egypt - Economic Activity
Industry Risk Reward Ratings
- Africa - Risk/Reward Ratings
- Table: Autos Risk/Reward Ratings Sub-Saharan Africa
- Company Monitor
- General Motors Egypt (GM Egypt)
- Africa Overview
- Sometimes It's Who You Know
- A Matter Of Price
- Cars May Take Longer
Global Industry Overview
- Demographic Outlook
- Table: Egypt's Population By Age Group, 1990-2020 ('000)
- Table: Egypt's Population By Age Group, 1990-2020 (% of total)
- Table: Egypt's Key Population Ratios, 1990-2020
- Table: Egypt's Rural And Urban Population, 1990-2020
- Industry Forecasts
- Sector-Specific Methodology
- Risk/Reward Ratings Methodology
- Table: Automotive Risk/Reward Ratings Indicators And Weighting Of Indicators
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