Overpricing re-emerges in Egypt’s auto sector due to low supply

Overpricing re-emerges in Egypt’s auto sector due to low supply

To clarify, Omar Balbaa, Head of the Automotive Division at the Federation of Egyptian Chambers of Commerce (FEDCOC), said the local market recession in the current period, besides the decline of global production, prompted car agents to import fewer units. Therefore, shares of distributors decreased and some models were overpriced.Balbaa added that distributors and dealers resorted to overpricing to cover fixed and capital costs, including operating costs, salaries, and taxes. In his view, dealers were forced to raise the prices of some cars, in order to avoid lay-offs or closing their showrooms.He pointed out that overpricing is the most appropriate way for distributors to increase revenues, compensate for losses, and cover expenses in light of the slowdown in sales and the deteriorating market conditions.Balbaa, however, excluded any decline in car