Manufacturers Association: No One Can Currently Predict Car Price Declines in Egypt

Khaled Saad, Secretary General of the Egyptian Automobile Manufacturers Association, said that car prices in the Egyptian market are directly linked to movements in the US dollar exchange rate. He explained that vehicle costs, along with shipping expenses, insurance costs, and customs duties, all depend on foreign currency, making exchange rate fluctuations the primary factor influencing vehicle pricing and import costs in the local automotive market.

Uncertainty Surrounding Car Prices

Saad stated that it is currently impossible to predict whether car prices will decline or increase over the coming week or even the next month, as the foreign exchange market continues to experience volatility while also being affected by geopolitical developments across the region. According to him, these ongoing economic variables make it difficult to forecast future pricing trends for new vehicles in Egypt with any degree of certainty.

Current Discounts and Market Demand

He added that current prices in the local market are the lowest seen in a long period, particularly after dealers representing six automotive brands introduced price reductions across a number of models. He noted that these reductions encourage consumers planning to purchase a vehicle to move forward with their buying decisions instead of waiting for additional price cuts that may never materialize. Saad also pointed out that the Egyptian automotive market is currently witnessing relatively strong purchasing activity, coinciding with the return of Egyptians working abroad and the approach of the new school year, a period that traditionally sees higher demand as many families replace existing vehicles or purchase new ones.

Sales Distribution by Price Segment

According to Saad, around 70% of total vehicle sales in Egypt are concentrated within the economy car segment, where prices range between EGP 650,000 and EGP 900,000. Vehicles priced at EGP 1.5 million and above account for the remaining share of market sales. He further noted that vehicles priced above EGP 5 million represent only about 5% of all cars offered in the local market.

Luxury Cars and Consumer Purchasing Decisions

Saad concluded by saying that purchasing decisions for luxury vehicles starting from EGP 3 million are generally unaffected by increases or decreases in prices. In contrast, demand for economy cars responds directly to promotional discounts and price increases, making this segment the most sensitive to market pricing changes during the current period.