The local market is witnessing unprecedented turbulence

05:01 PM

Friday, January 11, 2019

Books - Ayman Sabri:

Khaled Saad, General Secretary of the Egyptian Automobile Manufacturers Association, commented on the wave of price reductions witnessed by the car market since the beginning of January, in parallel with the start of applying the customs exemption on cars imported from the European Union countries.

"The market is witnessing unprecedented turbulence because of the instability of the price map after Zero Customs," Saad said in an interview with Arabiya radio.

He added that a number of companies and trademark agents are trying to dispose of their stock of 2018 models by lowering their prices, believing that customers will not accept these models.

The Secretary of the Association of Automobile Manufacturers predicted that the price and sales instability will continue for three months, with the market recovering from the second quarter of 2019.

He pointed to consultations currently underway with a number of parent companies abroad to reduce car prices so as to be able to compete with European cars that enjoy full customs exemption.

In another context, Saad stressed that the year 2020 will witness the beginning of the production of Chinese cars of Egyptian origin, explaining that the agreements between Egypt and China will play a crucial role in the localization of the Chinese automobile industry in Egypt.