TNS Egypt for market research has surveyed 500 high-income Egyptians who expressed interest in buying cars to gauge consumer appetite for automotive purchases in 2013, given the prospective increase in fuel prices and the rise of the US dollar exchange rate. The survey was conducted following the launch of the Automech-Formula automotive event, which is held in Egypt from 17 to 24 January.
The survey indicated that among high-income Egyptians who would potentially buy a car, 65% believe that the increase in fuel prices would factor into their choice of a car that is more fuel-efficient, while 18% felt that the rise in petrol prices would not affect their choice.
Another factor in consumer consideration is the rising price of the dollar exchange rate. According to the survey, 55% of those planning to purchase a passenger vehicle believe the exchange rate will influence their decision. Yet, the impact isn’t strong enough to dissuade them from buying. Of those surveyed 28% believe that the impact would be “limited or none,” while 17% are waiting to see how the market is when they decide on buying.
“According to the Auto Makers Information Council, AMIC, the automotive market has recovered in the second half of 2012, achieving an increase of 13%, reaching 179,000 car sales against 159,000 in 2011”, said Tamer El-Naggar, TNS CEO for Egypt and North Africa. “The increased US dollar rate and the anticipated increase in fuel prices have confused the market, although those who are planning to buy cars will proceed but with probably more budget-driven choices”, added El-Naggar.
In terms of financing, the survey showed that 49% of potential buyers plan to pay in cash, 24% are considering direct monthly instalments with car dealers, 13% are considering bank loans to pay for their cars , while the remaining 14% have yet to decide.
The study also surveyed purchasing-intention in terms of brands. Among economical cars, the largest share of intended purchases went to Hyundai, with KIA, Toyota, Mitsubishi and Chevrolet making the top five of brands intended for purchase.
“Overall, TNS survey shows that 10% of total respondents are planning to purchase a car in 2013, 5.6% are planning to buy a car in one to two years, and 3% between the next two to five years.”