Abou El Magd: Importing Cars is a Right for All, Closing Doors to Importers Creates Unfair Market

Osama Abou El Magd, Head of the Egyptian Auto Dealers Association, has affirmed that car importing is a legally guaranteed right for all economic entities, including major corporations with substantial capital. He emphasized that this legal framework is a fundamental pillar for supporting market diversity and enhancing competition among various stakeholders.

Response to Minister of Industry's Statements

Abou El Magd's remarks came in response to statements by Khaled Hashem, Minister of Industry, who confirmed that the government is moving toward imposing new regulations on car imports. The goal is to organize the market and curb what he described as "chaos" resulting from small showrooms importing large quantities without sufficient regulation. The minister considered this situation to be affecting market balance and the market share of major companies, in addition to its impact on plans to support and localize domestic manufacturing.

Parallel Importing Under Threat

Abou El Magd explained that opening imports exclusively to authorized dealers would eliminate what is known as "parallel importing," which is one of the most important tools for price stabilization and creating a competitive environment that benefits the end consumer. He described the absence of this type of importing as an "unhealthy market climate."

Warning Against Dealer Monopoly

The Head of the Auto Dealers Association added that restricting import operations to authorized dealers only would directly lead to higher car prices, as a single entity would control supply and demand mechanisms. He noted that this situation gives dealers the power to impose higher pricing levels in the absence of real market competition.

Abou El Magd pointed out that global experiences confirm the importance of an open market, stressing that no country within the European Union adopts a system that prohibits imports or restricts them solely to brand dealers.

Parallel Importing as a Balancing Factor

The association head emphasized that the presence of independent importers creates market balance by diversifying car sources and offering multiple price levels. He confirmed that this positively impacts consumers through lower prices and improved service quality.