Egypt Car Dealers Chief: Two More Price Hikes Are Coming

The hikes are coming. Osama Abou El-Magd, head of the Egyptian Car Dealers Association, expects the wave of new car prices to continue in the local market, predicting at least two additional price increases driven by dollar exchange rate pressures, geopolitical tensions, and disrupted trade and shipping. One figure stands out: dealers may already be pricing cars at 54 EGP to the dollar.

Why dealers expect two more rounds of increases

The reason is simple. Abou El-Magd said the dollar is expected to climb 3.5 to 4 EGP against the Egyptian pound for the first time in six months, warning that continued pressure will push new vehicle prices higher as dealers factor potential currency moves into their imported model pricing. Dealers are front-running the crisis.

Uncertainty over regional and international developments makes market forecasting harder, with war-related tensions and security conditions in the region adding to challenges facing navigation in the Red Sea and the Strait of Hormuz. These factors combined raise shipping and import costs, with potential spillover into energy markets and fuel prices — all of which feed directly into the cost and availability of imported cars in the local market.

Dealers push back on blame for rising prices

Are dealers the cause? Abou El-Magd denies it outright, citing January and February offers and discounts ranging between 15% and 25% on some cars as proof that prices respond to supply, demand, and company pricing policies. The rebuttal was direct.

The association head stressed that consumers must understand prices could see further movement based on exchange rate developments, import costs, and supply levels, confirming that current indicators point to new increases ahead. The message to buyers: prepare.

On highways and showroom floors, Egyptian buyers are watching closely. Two potential hikes mean any delayed purchase could cost more, and the used car market may see unusual activity as some shoppers turn to ready alternatives. The numbers will tell the story.