Automotive prices decline in beginning of 2020

CAIRO – 26 January 2020: Prices of most types of cars in the Egyptian market have witnessed a decrease since the beginning of the year, Head of Car Dealers Association Osama Abul Majd said.
Abul Majd indicated that the prices of some types decreased by 3 percent.
“The prices of some of the brands that entered the Egyptian-Turkish agreement regarding exemptions on cars manufactured in Turkey dropped by 6 percent compared to the prices before the agreement,” he referred.
Regarding sales of cars in the Egyptian market, he affirmed that January and February have always witnessed a decline in sales in general and regression occurs during these months.
The head of Car Dealers Association explained that this regression leads to the need for companies and exhibitions to compete and provide offers to the consumer to increase sales during that period.
Abul Majd advised those wishing to buy cars to take advantage of that period, as there are offers and inducements to seize, and it is possible that they end with the return of car sales again, and therefore prices can rise.
He pointed out that car prices are affected by three main determinants: First, the agreements signed between countries regarding customs reduction or exemption; second, the exchange rate against the dollar; and third, the competitive prices offered by companies.
“So, the decline in car prices in Egypt came after several agreements were signed with the European Union and Turkey and also the decline in the price of the dollar to less than LE 16, compared to 18-19 pounds last year,” he referred.
following the decline in the prices of Turkish and European cars, companies that were not included in these agreements seek to reduce their prices in order to be able to compete in the market, according to Abul Majd.