Abouelmagd: customs reference price changes to push car prices up and threaten parallel imports

The numbers are alarming. Osama Abouelmagd, head of the Car Traders Association in Egypt, revealed that customs reference price lists have seen widespread revisions recently, signaling a fresh wave of car price hikes. The market is bracing.

During a television interview, Abouelmagd explained that multiple customs outlets have been affected, warning that the randomness in setting these prices will directly increase costs for consumers. The chaos at customs threatens the future of imports.

The trim level dilemma

The gap between trims of a single model is huge. The association chief said imported car brands include multiple trims per model, each with a different price, and applying the highest invoice as a reference price across all trims is unacceptable. Each trim must be itemized separately.

He added that raising the reference price will inevitably lift car prices in the coming period. The impact will ripple across the entire market.

Monopoly fears and the parallel import lifeline

Abouelmagd issued a strong warning about the consequences. He stressed that continuing down this path will eliminate importers, leaving the official agent as the sole seller of cars in Egypt with no competition. The result? Prices rising as agencies wish.

Parallel import offers new cars outside the agent network with higher specs and lower prices, as Abouelmagd emphasized, but weakening it will open the door to real monopoly. The difference between agent and importer also shows in the Acid number and oversight, an issue that needs reconsideration.