Egypt automotive sector sees continued fluctuations amid COVID-19

Egypt automotive sector sees continued fluctuations amid COVID-19

The Egyptian car market has seen a decrease in the quantities of vehicles offered during July due to the negative repercussions of the novel coronavirus (COVID-19) crisis.

The decrease in supply comes off the back of some agencies stopping the delivery of quotas to distributors due to late shipping from the parent companies.

Factories worldwide have, for over three months, stopped production to limit the coronavirus' spread, which has had the knock-on effect of causing a shortage of supply in some imported brands. This includes Nissan, Seat, Citroen, Fiat, Renault, Opel, and Peugeot, with distributors unable to keep their stocks up.

Despite the resumption of work at factories worldwide, production is still insufficient to meet international demand because of reducing capacity to 50%.

Karim El Naggar, Chairperson of Kayan International Trade, and Egyptian Automotive and Trading Company, said that his two companies have reduced their distributors' shares due to the halt in production at factories run by parent companies for over three months. This has led to the decline of car imports and sales.

El Naggar added that the global health crisis that erupted in December has caused economic confusion worldwide.

The significant disruptions have led to new models and previously contracted deliveries being postponed.