Osama Aboul Magd Rules Out Car Price Drop Exceeding 10%

Osama Aboul Magd, head of the Automobile Dealers Association in Egypt, has ruled out growing expectations that imported car prices in the local market could drop by more than 10% in the coming period, despite the noticeable decline in the US dollar exchange rate against the Egyptian pound.

Gradual Decline Expected, Not a Sudden Drop

Aboul Magd confirmed that car prices might see some decrease, but it will not be significant or happen all at once. Instead, any reduction will be gradual and phased. His statement comes as the dollar fell below 49 Egyptian pounds recently, prompting speculation of a sharp decline in car prices. However, the association head believes the situation is more complex than a simple correlation between currency rates and vehicle prices.

Multiple Factors Influence Car Pricing

Aboul Magd explained that while the exchange rate of the dollar and foreign currencies plays an important role in determining car prices, it is not the only influencing factor. A range of other elements intervene in the final pricing of cars in the Egyptian market, often making the link between currency value and car prices indirect.

Among the key factors he cited is the rising cost of insurance for imported car shipments, which adds significant financial burdens on importers. He also pointed to the global surge in shipping costs, which directly impacts import expenses and, consequently, the final prices paid by consumers in Egypt. These combined factors limit the ability of a weaker dollar to produce a rapid and substantial effect on car prices.

Calls for Import Liberalization to Reduce Prices

Aboul Magd called for fully opening the door for car imports, whether through official dealerships or independent channels, while ending current restrictions that prevent imports outside authorized agents. He stressed that such a move would increase vehicle supply in the local market, helping to gradually lower prices through competitive market mechanisms.

He added that current restrictions do not only affect consumers but also create disparities among dealerships themselves regarding allowed import quotas, hindering the establishment of a free and fair market for all. Aboul Magd believes that import liberalization would help ease pricing pressures and improve vehicle availability for Egyptian buyers.