Dealers' head cites the dollar and shipping costs as 11 brands raised prices of 38 models
In short
11 car brands raised the prices of 38 models in October, by between EGP 5,000 and 150,000. Dealers point to the dollar, close to EGP 55, and to shipping and insurance costs.
11 car brands raised the prices of 38 models this October. The increases ranged from EGP 5,000 to EGP 150,000.
The brands are MG, Deepal, Haval, Changan, Chery, Hyundai, Forthing, Soueast, Nissan, Kia and Skoda.
What is behind it
Osama Abu Al-Magd, head of the Car Dealers Association, said prices have moved noticeably since the start of October. He named the dollar exchange rate, higher shipping and marine insurance costs, and import restrictions.
He said the dollar is now close to EGP 55. Regional disturbances have hit global trade and car shipping routes, he added, and that puts more cost on importers. Some dealers are holding back on sales until the cost of replacement cars and the expected margin become clear.
Abu Al-Magd expects the exchange rate, shipping and insurance to stay the main drivers of prices in the coming period.
Could more increases come
Montaser Zeitoun, a member of the car division at the General Federation of Chambers of Commerce, said the recent increases may be the start of a new wave. That would happen if the pressure from the exchange rate and regional tension continues. He said companies and agents may then review their price lists.
He also said some buyers may delay their decisions, while others may rush to buy before new increases.
Cash and contracts
Mohamed Mostafa, chairman of Extreme Auto, said the increases since the start of October have lifted demand for cash purchases compared with instalments. Some customers are buying cars as a way to keep the value of their money, not only to meet a real need, he said.
He put the dollar at about EGP 54.90. He said distributors raised their contracts with agents by 10% to 15% compared with usual rates, to meet rising demand. He expects further price increases if the dollar keeps rising. Companies that have not raised prices recently may review their lists in the coming days, he said.
