Insurance, whether comprehensive or obligatory, is crucial to help accelerate the market and insurance payment, according to Atef Yaqub, Chairman of the Consumer Protection Agency.
Yaqub said the government should speed up the process of establishing accredited insurance centres to evaluate used cars before they are sold. This will ensure a quick sales process and secure the rights of both sellers and buyers. The provision of a certificate describing the condition of the car, which helps in evaluation and pricing, is a common practice across the world.
He explained that that the agency is not working against the interests of car makers, but rather to secure consumers rights.
He went on to explain that the number of complaints is steadily declining, indicating improvements in the ways the car purchase and sale process is handled.
Farid El-Tobgui, Chairman of the Bavarian Auto Group, demanded amendments be made to both leasing and industry laws, as they have become outdated. He also demanded periodic examinations of old cars in order to preserve the environment.
He said that the automotive sector in neighbouring countries contributes to 10% in growth, in Egypt the sector contributes only 4%. This points to a need for more investment incentives to develop the sector in the coming phase.
Mahmoud Halawa, Nissan’s General Manager for Marketing and Sales, asserted the importance of investment incentives provided to automakers, like receiving designated lands or customs and tax incentives.
Salman asserted that the law of industrial lands allocation will be passed by the President within days.
He said the investment law will be passed by the end of February after moving from the Cabinet to the legislative reform committee. The President will then ratify it in place of the legislature.
He explained that the law will not allow for preferential treatment for any investor regardless of nationality. The investment authority will be the only unified licensing agency, instead of the investor dealing with 78 different licensing bodies.
The audience requested that the Investment Minister provide incentives to automakers in Egypt who manufacture automotives in accordance with the global standards during the next phase.