Egyptian-car-dealership
Материал из campus.mephi.ru
GB auto, Egypt's only listed car manufacturer, announced in February that it signed a binding agreement with the Hong Kong-based Geely Automobile to commence dispersing Geely cars in North Africa. "The facility has recently produced the very first regionally assembled Geely Emgrand 7 models," the company said. Following the deal, GB Auto's capacity reached 70,000 cars annually. Geely's Emgrand 7 is intended to replace the medium-size Hyundai Verna which has obtained substantial good results in the Egyptian market. GB Auto will cease manufacturing the Verna after 2013.
The automobile sector in Egypt is intensively sheltered by the authorities. Automobiles imported to Egypt are troubled with a primary contract price of 40 per cent and a sales tax of Fifteen %. For vehicles with engines larger than 1.6 cc, the cost soars to One hundred twenty-five per cent. The market is also restricted to installation, with low value-added. Investment Bank Beltone Finance mentioned that GB Auto is expected to sell about 6,000 units of Emgrand 7 in The year 2013. "We expect the Emgrand 7 to slowly start being acknowledged in the Egyptian current market, as the market is still unfamiliar with the manufacturer and the product," Beltone said in a note issued. "We are forecasting GB Auto to sell 6,000 Emgrand 7 cars in FY2013, and we expect this amount to progressively rise, reaching 23,000 in FY2016." GB Auto reported a 25 % surge in first-half net gain to LE92.5 million ($15 million).
With a significant domestic niche and a considerable local manufacturing foundation, Egypt’s auto retail industry is among the biggest in the Middle East and North Africa (MENA) vicinity. Sales seem to have been hit by the recent political discrepancies and economical decline, but pent-up demand is estimated to aid the recuperation improve from its currently lethargic pace. This will have a knock-on effect for the construction sector, which is preparing for resurgence. Overall motor vehicle sales were up 4.4% year-on-year (y-o-y) in May, the local mass media revealed on June 26. Some 15,465 units were sold, two-thirds of them passenger cars, according to the Automotive Marketing Information Council (AMIC). An uptick in sales of commercial vehicles - trucks and coaches - was the primary progress driver. While passenger car profits totalled 10,758, down 3.8% on May 2011, bus sales increased by 30.7% to 1358 units and truck sales increased by 29.6% to 3340 units.
The passenger car sector is led by GB Auto, which in fact had a 34% share of the market in the first several months of the year. The biggest self-sufficient carmaker in the Middle East, GB manufactures, assembles, imports and distributes vehicles for international firms, including Hyundai, Mitsubishi, Volvo and Mazda. Approximately 40% of passenger cars available in Egypt last year were assembled domestically, reported by AMIC. Several major brands, including General Motors, Mercedes, Hyundai, BMW and China’s Chery, are constructed in Egypt. Some use complete knocked-down kits, which might be imported and then assembled locally, thus bypassing high taxes for the import of complete units. Egypt also has a developing components segment, benefitting from the local car makers and from the country’s competing strengths, such as low work charges, low overheads and geographical location.
