Xin Hua She·2026-01-12 12:53Core Viewpoint - The Egyptian automotive market is experiencing significant changes, with improved supply and more affordable prices, largely due to the influence of Chinese automotive brands [1][6]. Group 1: Market Dynamics - The supply of vehicles in Egypt is increasing, leading to more reasonable pricing, making new cars accessible to ordinary families [1]. - In 2024, sales of Chinese brand vehicles in Egypt reached 30,441 units, marking a year-on-year increase of 37.3% [3]. - The introduction of 18 new models by various Chinese automakers in July 2025, primarily priced below 1.5 million EGP (approximately 230,000 RMB), caters to the Egyptian consumer market [3]. Group 2: Local Production and Economic Factors - The Egyptian automotive market is transitioning to a phase characterized by local manufacturing and healthy competition, which is beneficial for consumers and the economy [6][7]. - The local assembly of vehicles is increasing, with a reported 31.7% year-on-year growth in CKD (Completely Knocked Down) vehicles in 2024, while CBU (Completely Built Up) vehicles only grew by 5.2% [10]. - The Egyptian government has implemented a national automotive industry development plan to promote local assembly and reduce import tariffs, which can lower costs significantly [11]. Group 3: Future Outlook - The strengthening of the Egyptian pound, increased local production, and reduced shipping costs are contributing to a downward trend in car prices, expected to continue at least until 2026 [7]. - The potential for growth in the Egyptian automotive market is substantial, driven by a young population and low car ownership rates [4]. - Chinese automotive brands are encouraged to invest in brand building, after-sales service, and customer-centric experiences to achieve greater market penetration in Egypt [13].