Banking sector maximised market suffering, head of automotive division at CCC unveiled

Daily News Egypt
2 Min Read

Head of automotive division at Cairo chamber of commerce “CCC” Effat Abdel-Ati stressed that there will be no decrease of new car prices in 2019, as the market is controlled by supply and demand.

Implementation of the GATT, and customs exemption for European vehicles according to the EEAA have no impact on vehicles prices in Egypt over all brands at all, Effat reaffirmed.

“It is expected that automotive market in Egypt will experience a boom in 2019, due to the stability of Egyptian economic conditions and its growth. Demand will increase by between 30 and 40% in 2019”, according to Effat.

He also called on the banking sector to enhance market growth, as all national banks have refrained from financing car purchases through granting loans for consumers for several years now.

This step has maximized the negative situation of automotive market, and its sales in return. Customers could not bear the high interest rates of private banks, in addition to the implementation of the floatation of the Egyptian pound, which was followed by prices hikes that increased the burdens on customers.

On the other hand, according to Effat, some customers coped with this situation by purchasing Chinese cars due to their lower prices, or buying second-hand vehicles.

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