By Shaimaa Elise
Banks have a supportive and influential role in the Egyptian car trade despite current challenges, according to Director of Barclays Bank for retail and branches sector Hazem Hegazy.
Banks face little demand for car loans, as consumers prefer to pay cash to buy Cars, he added.
Hegazy declared that there are funding programmes for banks to facilitate the buying cars with agreement with the distributors or compilers of auto parts.He added that banks focus on the stability of employment, in the manufacturing or synthesis or business sector of the automotive industry.
“The competition among all banks comes in the interest of the consumer, because different conditions and procedures for banks give greater choice to the consumer,” Hegazy said. “Banks have financing programmes for employees in public and private sectors and other employees for purchase cars.”
He confirmed that banks offer quick responses to requests from individuals about financing loans to buy cars, and frequently respond on the same day of request.
Hegazy encouraged banks to work in the field of financing manufacturing in the heavy cars field.
Ahmed Kamal Selim, managing director of Drive Company, said automotives companies are seeking to invest in the maintenance sector, which contains a large amount of labour. There are currently approximately 100,000 registered employees, in addition to double that number of unregistered employees.
Selim said that Drive Company seeks to contain a larger segment of consumers in the automotive market and provide them with high quality services. This allows the existence of a large market for cars.
He requested that the legislative structure related to investment in cars is amended, to provide an opportunity for automotive companies to achieve growth.
Chairman of the Automotives Committee of Insurance Ibrahim Labib said it is essential that insurance companies provide insurance awareness in collaboration with banks or insurance companies. This will avoid any misunderstanding of the importance of insurance and end the conflict between clients and insurance companies.
Labib added that there are 16 insurance companies in Egypt, adding that premiums generally amount to approximately EGP 5bn per year. Of this, 50% is car insurance premiums, whether compulsory insurance or integrative insurance. The premiums auto insurance totalled EGP 2.5bn.