The car market in Egypt is witnessing a state of anticipation and anxiety, in the context of the emerging crisis of the Corona virus “Covid-19” and the negative repercussions that led to the closure of most international companies, which led to a severe shortage of cars and their components.
Although many do not care about car prices today, as world public opinion is concerned about what is most important, but a segment of consumers who postponed the purchase decision until stability returns to the country are asking, do prices remain at their rates before the Corona outbreak or increase due to the limited supply Caused by factory closings?
Prices of cars in Egypt
Major General Hussein Mustafa, a former expert and executive director of the Association of Automobile Manufacturers, said that there are signs of a severe crisis in the Egyptian auto sector, given what the world is currently witnessing as a result of the new epidemic of Corona, “especially if the struggle against this epidemic is prolonged.
Mostafa added that the current situation in Egypt does not allow a large sales movement, especially after the recent decision to suspend government services, including licensing new cars and renewing the license, which will further decrease sales in the market.
He explained that it is assumed that the relevant authorities exceed the car licenses during this period of procedures to respond to the purchase in light of the postponement of the license because the sales movement did not stop completely.
Mostafa indicated that the wave of cuts that the car sector has witnessed since the beginning of 2020 is the most that car dealers and dealers in Egypt can offer.
He pointed out that in the event that the prolonged period of fighting against the emerging virus “Corona” continues and that most countries continue to close their export terminals, the situation will in turn depend on the Egyptian market, which leads to an increase in prices, with increased demand and less supply in the market.
Economic outlook
The Bloomberg Economic Agency noted that the global economy was affected by the spread of the Corona virus and the extension of major automakers to nearby factories, which led to a lack of production components for the automobile industry.
US credit rating agency Moody’s also expected a 2.5% drop in car sales worldwide this year due to the spread of the Corona virus.
For his part, Engineer Raafat Masroujeh, Honorary Chairman of the Automotive Information Council “AMEC”, expected sales to increase strongly during the second half of 2020, indicating that it will compensate the gap that occurred during the last period due to the outbreak of the epidemic around the world.
Masroujah confirmed that there will be stability in car prices during the coming period, because what car dealers want now is the return of sales movement again, pending the end of the “Corona” crisis by the end of next April.
When asked about the sales of the Egyptian car market during the months of February and March, Masroujah confirmed that February sales exceeded 15,000 cars, and he said, “It is good sales.”
He added that the month of March witnessed a slowdown and stagnation almost completely, as the events of the Corona epidemic increased.
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