DO YOU KNOW ABOUT CAR PRICES IN EGYPT?

The car prices in Egypt have gone down considerably after the revolution, and now it is enjoying a renaissance as the tourist season draws near. Tour operators are having great success with their new policies that benefit both the tourists and the Egyptian economy. It is obvious that the current economic downturn is encouraging Egyptians to get out and enjoy themselves more, and the authorities understand this perfectly.

To improve the car prices in Egypt, it is important for the Egyptian authorities to be flexible with their policies so that the whole country benefits. The current situation has resulted in many difficulties for the Egyptian authorities. The recent attacks on the mosques in Cairo have been responsible for many deaths and injuries, even though they were carried out by peaceful protesters. The government must take responsibility for its actions and start to restore order quickly before the reputation of the country is damaged further.

MAIN PROBLEMS FACING THE EGYPTIAN AUTHORITIES

One of the main problems facing the Egyptian authorities at the moment is the deteriorating trade and economic relations with the Gulf States. The Gulf States has recently imposed a wide range of trade and business sanctions against the country, cutting off almost all forms of commercial and financial transactions with Egypt. However, most of the countries that have implemented these kinds of restrictive measures have so far had very little success in doing so. They seem to be missing the point. They have not yet been able to persuade the Gulf States to remove their restrictions on the trade and finance sectors. In fact, many of them are not even reducing their own tariffs on exports, which show that they are completely dependent on the Gulf Cooperation Council for their trade.

If the Egyptian authorities really want to help the automotive industry, they should consider loosening their grip on the trade. There is no need for the country to be dependent on the Gulf Cooperation Council, especially since it has proven that its own policies have been causing more harm than good to the Egyptian economy. For starters, the excessive price controls and the rationing of resources have led to a shortage of capital for the Egyptian government and private sectors. This means that there is no room for expansion or innovation in the industry. Even if the measures that have been implemented so far are effective in managing the imports and exportation of goods, the impact of these policies will still only be felt over time.

MEASURES THAT HAVE BEEN IMPLEMENTED BY THE EGYPTIAN AUTHORITIES

The measures that have been implemented by the Egyptian authorities so far only include a ban on the importation of new vehicles, with a ban on the transport of used cars. The measures are said to affect mainly imported cars, but the effect will reach the automobile sector, especially the car manufacturers. However, the effects of the new law can also be seen on the thousands of car traders that have made deals with both local and foreign clients. Most of these traders are based in Cairo and Dokki, the two cities that have suffered major damage during the recent political turmoil. The closure of the markets may have something to do with the fact that the new car market was one of the few to survive the turmoil, but the traders are now facing difficult times looking for buyers and sellers alike.

Since the measures that the Egyptian authorities implemented last July came into effect, the car trade has lost almost half its business volume. However, most people are unaware of the reason why the new policy was implemented in the first place. One of the reasons why the measures were implemented was to control the price of the imported cars and encourage the domestic automotive industry to produce locally manufactured cars. The measures, however, were accompanied by heavy-handed measures such as raising the price of gasoline by 40 per cent, a move that sparked anger among drivers and ordinary citizens alike.

This was exactly what the automotive industry in Egypt needed to increase its revenues while reducing fuel expenses. With the rise in fuel prices, Egyptian consumers paid more for imported cars. As a result, the government lowered its profit margins for automobile producers, which increased the competitiveness of the car manufacturers in the Egyptian marketplace. In addition, the new policies allowed the Abu al-majd to directly negotiate with importers and importer brokers. This gave the car makers more leverage and more chance to reduce costs since they only need to pay the customs duty that the country's DMV charges them according to the value of the vehicle's content.

At present, it is reported that Mercedes Benz is to receive an offer from the Egyptian government for a possible number of a manufacturer-financing package worth billions of dollars. This will be the second major contract the company has signed with a Middle Eastern country in less than three months.

Conclusion

If finalized, this will mark the first win in a row for the company in Egypt and another boost to its rapidly expanding business operations in the Arab world. Whether it's the GP 2021 or the contract with Abu Dhabi, it's safe to say that the new era of Mercedes-Benz in Egypt has just begun.