Sales of spare parts for cars fell by about 50% over the past two months, after the government’s decision to liberalise the exchange rate in November.
Desouky El-Sayed, head of the Spare Parts Division at the Cairo Chamber of Commerce, said that the flotation of the Egyptian pound negatively affected importers and dealers of spare parts by causing a decline of 50% in their sales.
El-Sayed pointed out that the spare parts market had been suffering a recession in selling and buying over the past months. With the increased US dollar price, the market is in a state of complete stagnation, he explained.
He added that the prices of spare parts went up by 100% due to the increased dollar prices against the pound.
He explained that the prices of raw materials in industrialised countries also increased, as well as customs, leading to an overall rise in the cost of imported spare parts.
He stressed that the increase in customs significantly influenced the sector, besides customs clearance problems faced by importers.
He said that customs fees rose after the Egyptian pound’s flotation and as the customs’ US dollar price also went up by 100%.
He added that the increased customs fees forced traders to raise selling prices in the domestic market during the last period, explaining that the division is planning to hold a meeting with importers and dealers of spare parts in the coming days, after the postponement of the meeting that was scheduled on Tuesday.
The meeting will discuss the high customs fees and the problems of traders with the General Authority for the Control of Exports and Imports which examines and completes the necessary documents for customs clearance.
Samir Madani, deputy head of the Spare Parts Division at the Cairo Chamber of Commerce said that automotive spare parts faced an increase in prices, which contributed to a recession in the sector.
Madani added that any increase in the US dollar exchange rate in the coming period will increase the prices of spare parts at the same rate.