Market research for automotive industry in Egypt

February 28, 2020by Feedback ME3

Amidst a strong increase in demand for cars, the Egyptian government gives great priority to this sector as a major source of revenue, and it also encourages an influx of foreign direct investment in the automotive industry.

Market research has revealed that Egypt is one of the most promising and fastest-growing auto markets in the region, as it receives multiple factors that help its prosperity in a strong way such as the availability of employment, research and development efforts, geographical advantage, and government support.

And with the positive expectations of the prosperity of the Egyptian economy and the increase in the purchasing power of cars. Car sales in the country are set to increase significantly until 2026.

New investors in the market are turning to the low-price car sector, coinciding with an increase in sales with strong growth rates.

Research conducted on the car market in Egypt has revealed that competition will continue to intensify on an annual basis with the introduction of new models and brand availability.

Moreover, cars are expected to be produced in Egypt from 2016 to 2026. Demand for all types of these vehicles is also expected during the period.

To calculate the market size, market sales revenue for passenger cars, light commercial vehicles, and heavy commercial vehicles is considered.

The global auto market is poised to record strong growth by increasing light car sales from about 95 million to more than 106 million between 2019 and 2025.

The Egyptian auto market, its size, participation, expectations and growth opportunities 2020-2026 provide a comprehensive analysis of the country’s auto market.

market research for automotive industry in Egypt

automotive industry in Egypt achieved its highest global growth rate in 2018, by 95%, after it managed to produce 71 thousand and 400 cars, compared to the volume of production during 2017, which was estimated at 36 thousand and 600 units, between angel cars and commercial vehicles, According to data and statistics released by the Association of International Motor Manufacturers.

  • The auto industry in Egypt ranked 37th in the list of the top countries producing cars globally during the past year.
  • It is noteworthy that Africa’s production of cars reached nearly 1.13 million cars in 2018, compared to one million units produced in 2017, with a growth of 12.1%.
  • The auto industry in Egypt ranked third in the list of the top African countries.
  • South Africa topped the list of the top 10 African auto producers with a total of 610,854 cars, a growth of 3.5% over 2017.
  • Morocco ranked second on the list after producing 402,000 cars, a growth of 17.5%, while Egypt ranked third.
  • Algeria occupied the fourth position in the list with the production of 70 thousand and 597 cars, a growth of 16.5% over the levels of 2018.
  • Tunisia ranked fifth, after only producing 1700 cars


automotive market in egypt 2019

First of all, the automotive market had a noticeable decline in 2019, and we found that its sales dropped 6.7%, on the other hand, we noticed that the sales of locally assembled cars declined 11.6%.

Regarding the sales of imported cars, we found that they decreased by 1.7% because the vehicles went down from 38,850 vehicles to hit 38,179 vehicles.

the sales of passenger cars declined too with 11%, while the sales of buses increased in a perfect way with about 4% because we found the buses gone to 15,720 after they were only 6,805 buses.

The same thing happened to the sales of trucks because they climbed 3%, they were only 15, 474 trucks, and then they went to 15,720 trucks, which was very great.

After this outstanding decline in the sales of cars, we noticed that the reason for that is the weak fluidity of the largest segment of consumers, and it is a normal and expected result of higher prices, which we all noticed in the past few months.

We also found that almost all the consumers decided to postpone purchasing until they make sure that the prices stabilize, so we expect that this situation will be continued for a long time.

In the past few months, a group of people announced a great campaign called “let it rust”, and its purpose was letting cars rust by making people don’t buy any cars until the prices get low.

This campaign was very successful because it made the agents reduce the prices of their cars up to 30%, and the prices decreased from 150,000 LE to around 50,000 LE, and these prices depending on the car type for sure.


Total sales of cars in Egypt

The total sales of cars in Egypt reached (180) thousand cars (owners – buses – trucks) during the year (2018), an increase of (33%) over (2017), which means that the market is witnessing higher demand, pointing out that car sales Owners increased by (34%), and buses by (19%), while the percentage of increase in truck sales was about (36%).

In addition to that the auto industry in Egypt employs about (170) companies, and there are (19) companies that manufacture and assemble cars of all kinds, producing more than (24) thousand cars annually, and investments amount to about (3) billion dollars, including (1.6) billion dollars in the auto industry, as it currently works in the auto industry, has about (86) thousand workers

Statistics on the automotive industry in Egypt

  • The total Egyptian exports in the auto industries are estimated at more than 500 million US dollars annually.
  • Egypt hosts 17 international companies that collect and produce their cars locally.
  • the total sales of the Egyptian market will not exceed 120 thousand cars in 2017 due to the market’s decline for the second year.
  • The geographical location of Egypt makes it an ideal export center for the Middle East, North Africa, and Europe.
  • Car sales in the MENA region are estimated at $ 12 billion annually.
  • Of the 26 million cars in the Arab region, 7.2 million reside in Egypt, equivalent to more than a quarter of all cars on the road in the Arab countries.
  • The Egyptian market is the fastest growing car market in the MENA region.
  • 2 billion pounds of private cars were sold in Egypt during the first five months of 2016.
  • More than 100 companies operating in the automotive industries sector operating in Egypt.
  • 600,000 cars are produced annually in Egypt.
  • The Egyptian government plans to double car production by 2025 to accommodate the growing population expected to exceed 100 million by 2020.
  • Commercial vehicle sales are expected to grow as a result of the rapid expansion of the construction industry.
  • 35 out of 1,000 Egyptians own a car, which indicates huge potential for growth within the automotive sector.
  • With a large domestic market and an important local production base, Egypt’s retail automotive sector is one of the largest in the Middle East and North Africa (MENA).
  • Total vehicle sales increased by 4.4% year-over-year. Some units were sold 15,465, two-thirds of the cars.
  • An increase in sales of industrial vehicles, trucks, and buses – was the main driver of growth. While passenger-car sales totaled 10,758, 3.8% in May 2011, bus sales increased 30.7% to 1,358 units and truck sales increased 29.6% to 3,340 units.

automotive industry in Egypt

Egypt is one of the most important countries that are a part of the World Trade Organization (WTO) General Agreement on Tariffs and Trade (GATT), and because of that, you will find that Egypt is committed to reducing tariffs, and the rates ranging from 0 to 40%, according to international standards.

Generally, Market research for automotive industry in Egypt is considered one of the most important sources of money in the country and it is the main economic goal for almost all the big and huge Egyptian companies.

Moreover, you can see by yourself that the automotive industry in Egypt is the best way to achieve the country’s economic growth goals because it has a great ability to attract foreign direct investment.

It also perfectly helps in generating significant employment, so we can say that it can reduce unemployment clearly.

On the other hand, we saw that this amazing automotive industry in Egypt stimulated Egyptian exports in a very good way.

About the electric car industry in Egypt, we found that if the country went through this way and produced this kind of car, Market research for automotive industry in Egypt then it will possibly become a regional center without competition.

We also found that the interest of the government for electric cars increased recently because it is working on incentives to boost electric vehicles, which is something good in the automotive industry market in Egypt.

Therefore, we can’t say that Market research for automotive industry in Egypt includes only passenger cars, trucks, light commercial vehicles, buses, and commercial vehicles, but it also interested in electric cars.


market research for automotive industry

The Egyptian market now enjoys all the factors of attraction for foreign investments, the legislative framework that stimulates investments, new and advanced infrastructure, trained and ongoing technical labor, and the establishment of modern institutes and universities to qualify them, in addition to having low-cost labor,

And not to mention that Egypt is one of the largest markets in the Middle East and Africa, with access to the most important external markets through the trade agreements that Egypt is associated with with many countries and regional economic blocs,

They are the factors that have attracted the interest of many of the largest companies in the world to work in Egypt, and in the same framework and during the past period the President chaired several meetings to discuss the manufacture of an Egyptian-made electric car, with the major international companies that preceded us,

But this time the matter will not stop at the assembly stage, the most important goal is that the major companies can consider Egypt as a manufacturing base from which to export their exports to the neighboring countries in Africa and the Gulf, as well as the markets that are linked with Egypt with trade agreements.

Market research for automotive industry in Egypt, The plan includes producing 500,000 cars annually, exporting 100,000 cars, providing about 250,000 new job opportunities, preserving existing investments, attracting new investments by $ 5 billion, and increasing the sector’s exports to $ 3 billion annually.

The volume of investments in the automotive sector in Egypt amounted to 3 billion dollars, and the volume of car exports amounted to 69 million dollars last year, and the exports of the feeding industries sector last year amounted to 286 million dollars.

The most important target markets for Egyptian exports are the Netherlands, Malta, Turkey, the Gulf Cooperation Council countries, Slovakia, France, Germany, and the United Kingdom.

Electric cars are a nascent industry that accounts for about 1% of the total used cars in the world, where there are 5.1 million electric cars, compared to 1.2 billion traditional cars, so there will be more. Be incentives to encourage this industry.

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