Personal auto sales recorded 195,500 vehicles, amounting to a value of EGP 34bn in 2015. Korean brands topped total car sales at a total of 58,000 vehicles followed by Japanese brands with 54,100 vehicles and European brands with 42,600 car sales.
The US market recorded car sales of 27,600 vehicles during 2015, ranking fourth in the bestselling car brands.
Chinese brands ranked fifth recording 12,400 vehicles sold while the Malaysian “Proton” was ranked last with just 766 vehicles.
Chairman of Automotive Marketing Information Council (AMIC) Mostafa Hussein told Daily News Egypt that despite the 5% decline in car sales in the Egyptian market, the automotive sector safeguarded its sales rate in the wake of the challenges faced in 2015.
The auto sector faces many challenges related to the relationship between the auto companies and the department of customs regarding disputes over the indicative pricing for imported cars. Moreover the government still lacks a clear vision for the development of the automobile industry.
The sector is one of the most important for the Egyptian economy due to the quantity of customs and taxes it provides for the state, as well as the taxes collected from workers in the auto sales sector, after-sales services sector, and advertisements. Taxes are also collected on industrial and commercial profits of companies.
Hussein estimated the state’s direct income from the automotive sector totalled at half of Suez Canal’s annual revenues including customs, taxes, and development fees. About EGP 15bn was collected from customs and taxes on auto sales during 2015 excluding trucks and buses sales.
Hussein had previously told Daily News Egypt the automotive sector is the most attractive sector for labour forces; 22 direct job opportunities are created for every 1,000 sales of car excluding indirect job opportunities.
The oil industry is considered an industry that contributes to increasing employment, which is linked to the automobile industry.
Daily News Egypt had predicted that personal car sales would exceed the limit of EGP 33bn during 2015 compared to EGP 30bn in 2014.
Despite the decline of personal car sales last year, the “crazy” rise of prices has contributed to guaranteeing substantial profits for the companies.
The price of cars rose significantly due to the increasing value of the dollar against the Egyptian pound, as well as the commencement of indicate pricing by the Customs Authority, which is based on estimating customs duties in accordance with the global price of the car.