Expectations of Car Price Drops in Egypt in the Coming Weeks

Muntaser Zaitoun, a member of the General Automotive Division at the Chamber of Commerce under the General Union of Chambers of Commerce, has forecasted a decline in prices for several cars available in the Egyptian market in the coming weeks. He attributed this to the improvement in the Egyptian pound's performance against foreign currencies, particularly the US dollar, which fell below 50 pounds after previously nearing 54 pounds, thereby reducing import costs.

Zaitoun explained that this improvement contributes to lowering import costs for cars, which could be reflected in final consumer prices in the near future. He noted that most car companies had priced their models based on exchange rates exceeding 53 and 54 pounds to the dollar, but many dealers remain cautious about repricing and reducing car prices in line with the recent currency decline.

He added that the car market is experiencing a noticeable slowdown in sales, as a large segment of consumers postpones purchase decisions in anticipation of expected price drops following the decline of foreign currency rates in banks and the market. Zaitoun also pointed out a significant reduction in the 'overprice' phenomenon on several currently available models, with many distributors abandoning unofficial price increases amid weak demand and sluggish sales activity.

Furthermore, Zaitoun highlighted that the introduction of 2027 models for some brands, along with other dealers preparing to launch new models, will increase pressure on distribution networks to clear current inventory in the coming period, potentially driving prices further downward. Data from the Egyptian Motor Vehicle Compulsory Insurance Pool showed that the number of private cars insured and registered in May fell to 20,908 vehicles, compared to higher levels recorded the previous month, a decline of 9.01%.