Consumer
At a time when some car companies in Egypt are afraid of procuring the dollars needed for imports, others are looking with some banks to reduce part of their profit margin in exchange for allowing customers to be financed at a lower interest rate to ease the burden on the consumer who wants to buy a car in installments, according to what Mohamed Farid, sales manager at Jameel Auto, said. Pointing out that these discussions have not reached any results yet.
Farid said in his interview with Al-Sharq: “The decision to raise interest rates has a negative impact on the consumer in particular and the market as a whole in general.”
The car market in Egypt has suffered in recent months from the consequences of the global production cessation crisis and the cessation of local imports due to the difficulty of obtaining foreign currency.
An official at Abu Ghali Motors, who preferred to remain anonymous, told Al-Sharq that the impact of raising interest will greatly affect consumers, as the record rise in car prices that occurred during the last two years prompted many citizens to buy in installments through banks.
He added: “The impact of the decision on market workers has not yet appeared, but the market is suffering from a shortage of supply due to the scarcity of the dollar needed for imports for some time.”
The official added in his interview with Al-Sharq that there is a proposal that has not been settled on, which is reducing the profit margin in exchange for facilities that customers receive from banks in exchange for purchasing in installments.
the sales
The number of passenger cars sold in Egypt during the past year decreased by 51%, reaching 90,359 thousand cars, compared to 184,771 thousand cars during 2022, according to “Amic”.
Alaa Al-Sabaa, Chairman of the Board of Directors of Al-Sabaa Automotive Company, the authorized distributor for a number of car brands in Egypt, says that any increase in interest rates directly affects the buyer and the seller. He added: “It will lead to an increase in the cost of financing for the manufacturer, which will consequently affect the expansion of those companies.” And factories in the market.
Al-Sabaa added, in his interview with Al-Sharq, that the market will suffer from a continued decline in sales. He said, “It will be difficult for the citizen to borrow in light of these high interest rates, which have exceeded 25%.”
Car prices fell slightly after the Egyptian government announced the Ras El Hekma project deal, which caused the value of the dollar to fall in the parallel market, according to the head of the Group of Seven.
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