GB Auto, Egypt’s biggest listed automobile assembler, said on Thursday it was negotiating with India’s Tata Motors Ltd to sell its vehicles in the Arab world’s most populous market.
Egyptian automakers, most of which assemble foreign brands using imported parts, were hit hard by the global financial crisis last year, but sales are now growing at pre-crisis levels, partly thanks to a government plan to offer affordable cars to taxi drivers.
"We are in advanced phases of negotiations with Tata Motors, and we think that we are very close," Chairman and CEO Raouf Ghabbour told a conference call on Thursday.
GB Auto manufactures, assembles, imports and distributes vehicles for Hyundai Motor Co, Bajaj Auto Ltd, Mitsubishi Motors Corp, Volvo AB and Mazda Motor Corp.
"We are working on partnering with other auto suppliers. The origins that we thought of were India and China," Gabbour said.
The firm said on Monday its third-quarter net profit rose 11.4 percent year-on-year to LE 71.4 million ($12.4 million), bolstered by higher passenger car sales in its home market and in Iraq.
Tata Motors, India’s largest truck and bus maker, reported consolidated net profit of 22.23 billion rupees ($786 million) for the fiscal second quarter ended Sept. 30, compared with 220 million rupees a year earlier.
