Egypt’s automotive aftermarket enters the fast lane



Egypt’s automotive aftermarket enters the fast lane

Egypt is now in growth mode, even despite the rigors of the COVID-19 pandemic and was one of the few countries to record full-year GDP growth in 2020

CAIRO, Egypt, October 11, 2021 / APO Group / –

Egypt’s automotive aftermarket is gaining momentum and has been dubbed “one of Africa’s most exciting markets” as its auto population and vehicle sales increase, its economy grows, FDI flows in and out. the government is working to control auto emissions.

This is a powerful combination which, according to German trade experts in Africa, africon GmbH, the knowledge partners of Automechanika Dubai, the largest international automotive aftermarket exhibition in the Middle East and Africa, , resulted in a secondary market worth between $ 1 billion and $ 2 billion. And africon GmbH should know it, having worked on over 30 automotive market projects across Africa in the past few years.

The company has now turned its expertise specifically to the high potential Egyptian market with a white paper compiled from research conducted with automotive industry companies in the Arab Republic.

Opportunity on the rise:

The newspaper’s positive and opportunistic sentiment highlights the country’s growing population – now Africa’s third largest with over 100 million people – and its economic progress, having overtaken South Africa as the second largest continent’s economy with a GDP of 360 billion dollars and strong growth forecasts.

“The IMF predicts that growth will slow to around 2.5% this year but pick up at more than 5% from 2022,” the document reports. “After economically difficult years in 2016/17, inflation has returned to around 6%. Unemployment has declined and GDP per capita in US dollars has increased by nearly 50% since 2017. As a result, Egypt has been the largest recipient of FDI in Africa for several consecutive years, receiving over $ 9 billion. investment dollars in 2019 and nearly $ 6 billion in 2020. This growth is driven, among other things, by the pursuit of economic and fiscal reforms. For example, on the ease of doing business index, Egypt has improved by 14 places since 2018. ”

Egypt is now in growth mode, even despite the rigors of the COVID-19 pandemic, and was among the few countries to record full-year GDP growth in 2020.

Growing market:

Growth has fueled the aftermarket, with the country now home to one of Africa’s largest vehicle fleets with around six million vehicles on the country’s roads, the majority – around 4.6 million – being passenger cars. Next come nearly a million trucks and around 470,000 buses. Most passenger cars are gasoline powered, while many utility vehicles rely on diesel engines, but that could change soon.

“The government is increasing the share of dual fuel cars, which can use both gasoline and compressed natural gas (CNG). About 300,000 vehicles in Egypt already use CNG. This number will probably increase further over the next few years, ”the newspaper reports.

Egypt is also taking bold steps to replace internal combustion engines with more environmentally friendly alternatives. Last year, the government announced an initiative to encourage consumers to replace old vehicles with new ones running on CNG with extended credit facilities among its green program incentives. This has led the Chinese company Dongfeng Motors to plan to assemble up to 25,000 electric vehicles per year in an Egyptian assembly plant.

Even the brand makeup of the nation’s fleet is changing. The significant market shares held by Chevrolet / Isuzu, Hyundai, Toyota and Nissan could be eroded by the entry of European and Chinese brands fueled by preferential import duties.

“Sales of new vehicles in Egypt have recently increased, currently reaching over 200,000 units per year. About half of this figure is assembled locally. Egypt is home to notable local vehicle assemblers like GB Auto, General Motors Egypt / Mansour Automotive and Nissan. While most passenger cars are produced for the domestic market, many buses are exported to regional markets, ”explains the white paper.

Change the name of the game:

The heavily import-oriented Egyptian aftermarket is also dominated by Asian suppliers, namely China, Korea and Japan. However, Germany and the United States now rank among the top ten suppliers of parts and components in the country, and major global brands enjoy relatively high market shares for critical parts. But the local component manufacturing market is gaining ground and providing local vehicle assemblers, the aftermarket and export markets with a range of batteries, brake parts, wiring and nets.

The Egyptian importer / distributor landscape is a mix of small and large companies, most of which are based in Cairo. The independent aftermarket is fragmented. Importers / Distributors sell direct to end users, workshops and a network of wholesalers and retailers across the country. As is the case in other African markets, a significant portion of Egyptians, having followed the advice of trusted mechanics, buy their parts from dealers rather than workshops. However, most follow the advice of their trusted mechanics.

The trend and outlook:

E-commerce is emerging as a major force in the aftermarket thanks to highly visible platforms such as Odiggo, Tawfiqia, Egyparts and Amazon Egypt.

The Egyptian secondary market is ripe for growth and offers great opportunities for parts producers, distributors and service providers, but increasing competition from local producers may mean that foreign suppliers will have to invest in their own structures on the ground. or look for ways to add value locally to increase market share.

GB Auto, a leading Egyptian automotive supplier, sums up the expected scenario: “We currently see three factors strongly influencing the future of our market in Egypt: First, we expect a period of robust growth in various segments of the market. ‘industry. Second, online sales are likely to gain in importance. Third, the share of vehicles running on CNG is increasing further, which will open up new industrial segments and growth opportunities, ”explained Mohamed Yahia, Managing Director of Ready Parts (GB Auto Group).

Others looking for indicators of growth potential can track the attendance of Egyptian visitors to Automechanika Dubai, which has grown by 20% since 2015.

“We anticipate an increase in the number of Egyptian visitors when the show returns from December 14 to 16. This year we have the support and presence of the Egypt Expo & Convention Authority (EECA) and also saw a 142% year-over-year (2019-2021) increase in floor space taken up by Egyptian companies – a a real testament to the current conditions and the appetite for doing business, ”commented Mahmut Gazi Bilikozen, Trade Show Director of Automechanika Dubai.

Short Link:


NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @

Recent Posts

2 chairmen emerge as PDP factions in Oyo hold parallel congresses NGX Group listing on NGX excites market operators Fidelity Bank wins 2020 DBN service award Zimbabwe commemorates World Food Day Consensus candidates win at Niger APC congress WFP and Khalsa Aid International enter into partnership to help the most vulnerable in two critical food crises 90% of schools in Nigeria lack hand-washing facility for children – UNICEF Borno APC returns executives for a second term Visit of Minister of State for External Affairs Shri V. Muraleedharan to the Republic of Sudan and the Republic of South Sudan (October 18-22, 2021) APC Congress: Omotoso emerges Ekiti chairman NGO boss decries rising crime wave Misuse of social media, a trigger of post-election crises – ECOWAS Police Chiefs Africa, a reliable friend, partner of China – Envoy FCTA set to attract youths to agriculture for sustainable livelihoods – Secretary Divided Nigeria will not survive – FG Statement attributable to the Spokesman for the Secretary-General – on the Central African Republic New Tin-Can-port jetty to take 2m off Lagos gridlock daily – FG Capacity building for yellow fever laboratory screening in South Sudan Russia tops 1,000 daily virus deaths for first time APC state Congress: Borno returns executives for second term Hundreds protest in Sudan’s capital against government There is hope; Northeast is at turning point – UN Cape Verde ready for credible elections Oct. 17, official tells ECOWAS mission N20bn bailout: Kogi govt demands apology from EFCC UK provides nearly £ 30million for humanitarian disaster in northern Ethiopia UN-Nigeria Jubilee Fellowship: 350,000 youths, 9,000 coys register in 10 days – Yahya PDP Congress: Atiku, Fintiri, 2,612 other delegates cast votes in Adamawa Accept election results to prevent violence – Police Chiefs tell ECOWAS politicians Insecurity: Coalition, author sue for unity, progress Myanmar junta chief excluded from ASEAN summit Abdullahi Abbas, Danzago set emerge factional chairmen as Kano APC holds parallel congresses Navy ship USS Hershel “Woody” Williams visits Maputo, Mozambique Security review after British MP stabbed to death in ‘terror’ attack Mozambique becomes first country to receive emissions reduction payments from the Forest Carbon Partnership Fund Slapfight Nigeria commences training for athletes, officials France pays tribute to teacher beheaded over Mohammed cartoons MEDIA INVITATION: update on the ongoing consultation process on the future of women’s football Bali earthquake kills three, injures seven U.S. Embassy Chargé d’Affaires and USAID National Representative Participate in Food Distribution to Commemorate World Food Day NASA launches Lucy probe to explore Jupiter asteroids IMF staff completes virtual mission to Lesotho Peace Corps helps launch vaccination campaign in Mantasoa commune Macron marks 60 years since Paris Algeria protest massacre Minister of State Annen in North Africa US government launches new project to fight corruption and wildlife trafficking in Madagascar Vibrant Afghan radio reduced to religious relic Thief flees in tractor after bungled Australian robbery CAS tasks troops on professionalism, discipline COVID-19: PSC issues revised international travel protocol into Nigeria World Food Day: Food waste, threat to food security – Minister