Car Prices in Egypt Could Rise Despite Dollar Decline

While many are anticipating a drop in car prices following the recent decline of the US dollar against the Egyptian pound, contradictory statements have emerged from Osama Abou El Magd, head of the Egyptian Car Traders Association, suggesting that prices may actually head upward in the coming period.

Dollar Impact on Car Prices

Abou El Magd explained that the dollar's decline below the 50-pound mark will not have an immediate effect on car prices in the local market, pointing to other more influential factors that could push prices higher rather than lower. He stressed that the impact of foreign exchange rate fluctuations on the automotive market takes considerable time to materialize, especially given the presence of other variables affecting import and supply costs.

Reasons Behind Rising Car Prices in Egypt

The head of the Car Traders Association outlined several reasons that could lead to higher car prices in Egypt through the end of the third quarter of 2026, despite the dollar's retreat. These include linking the ASID import code exclusively to authorized dealerships, preventing independent importers and traders from obtaining it. Restricting competition to dealerships only within the Egyptian market gives them greater control over pricing. Additionally, independent companies and traders face significant difficulties in importing vehicles individually.

He also cited rising maritime shipping costs and higher insurance premiums as additional factors pressuring import expenses. Furthermore, global car price fluctuations and ongoing supply chain disruptions at manufacturing plants continue to play a major role in determining final prices in the local market.

The Only Solution to Lower Car Prices

Regarding how to achieve a genuine reduction in car prices, Abou El Magd emphasized that the fundamental solution lies in opening the market to competition from all companies, not just authorized dealerships, and allowing everyone to import vehicles to ensure greater supply availability at various price points. He noted that increased supply and genuine competition are the only factors capable of driving prices down sustainably, far beyond the effects of exchange rate fluctuations alone.