GB Auto has announced its partnership with global tyre manufacturer, Goodyear, to become an authorised distributor of all types of Goodyear tyres in Egypt.
Regarding the near-term financial impacts, Naeem Research expects the new agreement will contribute an incremental EGP 200m in revenues to Egypt’s tyre segment, but with higher margins as it is a premium product.
Tyre revenues account for 4% of GB Auto’s total revenues, and contribute 5.4% to the company’s consolidated gross profit.
“Like Goodyear, GB Auto shares a strong heritage, they have been in the automotive business in Egypt for more than half a century with a culture that focuses on encouraging the spirit of innovation,” said Khaled Arafa, General Manager of Goodyear Middle East and Africa, “Our goal is to become the premier tyre brand in Egypt and across the region, by responding to the needs of consumers and becoming their preferred choice.”
Arafa added, “This partnership confirms our commitment to the Egyptian market, and we will leverage on our brand heritage, products, and strong local partnerships to serve the market’s needs and customers as we are seeing very high potential in the country.”
Karim Gaddas, Group Chief Operating Officer (CEO) of GB Auto, said, “Goodyear is the perfect fit in our GB Auto portfolio, as it completes and consolidates our positions in the premium and prestige segments.”
He added, “Our main objective has always been to offer the Egyptian consumer a unique experience in terms of service and comfort, and this partnership will allow us to offer Goodyear quality tires all over Egypt through our wide range of networks.”
From 2021, GB Auto intends to launch a Goodyear branded tyre express network all over Egypt. The service will offer the Egyptian consumer a unique experience in terms of service and comfort.
GB Auto will continue investing in the development and upgrade of its distribution networks, as part of its keenness to keep delivering the best customer experience to local consumers. It also looks to maintain high levels of service offered to its customers across all lines of business.