Does the "Khalila" campaign succeed in lowering car prices?

05:17 PM

Saturday 19 January 2019

Books - Ayman Sabri:

A campaign launched by a number of people affected by the price of cars in the Egyptian market for the boycott of purchase, began to promote for the first time through social networking sites in October of 2015.

According to Mohammad Radhi, one of the founders of Khalia Ta'adi, the campaign has been going on since 2015 and has not stopped. The main goal is not to punish traders but to provide fair prices for buying.

In a telephone interview with Radio Egypt, Radi said that the demands of the campaign are based on monitoring the prices of cars and not leaving prices in the hands of merchants, pointing out that some traders and agents are exaggerating the profit margins.

Since the beginning of the year, social networking sites have witnessed calls to boycott cars until fair prices are reached. The number of followers of the campaign's main page has reached 166,000.

In a statement, the campaign "Khali Tasadi" indicated that the main objective is not to terminate the work of agencies or distributors or cause them to material losses, asserting that they have the right to trade and win in a way that satisfies the parties to the sale.

The campaign officials pointed out that if the agents did not respond to their demands there will be other alternatives to the plant, stressing that they will work to follow the market fully to ensure that agents do not exploit customers in the after-sales.

"The market is suffering from a recession for months and the campaign has nothing to do with a drop in sales," said Alaa Al-Sabaa, member of the General Automobile Division of the Federation of Chambers of Commerce.

He added that the decline in sales is due to the expectations of customers with large price reductions with the introduction of the last tranche of tariff cuts on European imports and their reluctance to buy. .

"The campaign has not yet directly affected prices, but the campaign is becoming a source of concern for some agents and distributors," said Raafat Masrouja, the honorary chairman of the AMIC.

In a press statement, Musrojeh said that some car dealers confirmed in the last months of last year that car prices would not fall as they were exempt from customs, and then dropped significantly since the first day in 2019. Many customers lost confidence in the car market.

A number of dealers in the used car market agreed that the campaign "Khalia Tdaadi" did not affect the movement of selling and buying in the market, stressing that sales stalled four months ago or more for reasons of reluctance of customers to buy until the clarity of vision after the exemption of customs and price stability.

Engineer Hamdi Abdul Aziz, former head of the Engineering Industries Chamber of the Federation of Industries, said that what is being circulated through social networking sites about the profits of the agents, which may reach 150,000 pounds per car, is incorrect.

Abdul Aziz pointed to a study conducted on the Egyptian car market that proved that pricing is entirely controlled by the parent companies and not the agents in the local market.

Experts predict that the Egyptian auto industry in 2019 will grow by 20 to 25 percent year-on-year to 220-225,000 by the end of December.