Egypt’s auto market witnessed huge development since the start of 2019, as various waves of price cuts disrupted the market. The first wave of cuts coincided with the implementation of the final phase of the EU-Egypt Association Agreement, which lead to the full customs exemption on European cars, leading to a huge reduction in European car models’ prices, that even reached the EGP 2m mark in some luxury car models.
Consequently, this development forced Asian and US automakers to offer further price reductions on their cars to stay in the competition.
Concurrently, the exchange rate of the US dollar declined against the Egyptian pound during June, which leads to the second wave of price cuts. Al-Mansour Automotive and Ghabbour Auto were at the forefront of the new reduction wave.
As the summer season started, several automakers started to offer summer promotions on their car models, featuring maintenance, spare parts, and price discounts. The ever-growing list of automotive companies includes; Kia Motors Egypt, which announced discounts on brake pads up to 40% and prices starting from EGP 850 on maintenance; Toyota Egypt which announced a 15% discount on spare parts at its Sharm El Sheikh service centre, and a 10% discount on spare parts and at its Marina service centre in North Coast.
Furthermore, as companies started to roll out 2020 car models, a new wave of price cuts started, as several German automakers offer new models in August and September of each year, while Japanese automakers offer their new models in July and August each year, and Chinese and Korean automakers offer their new models in June.
Omar Balbaa, the head of the automotive division of the Federation of Egyptian Chambers of Commerce, said that a certain pricing policy would be applied to the 2019 models, along with the introduction of new 2020 models cars, especially after the devaluation of the dollar against the EGP, contributing to the decline in prices of 2020 car models, as the import costs decline.
Almost 27 car models witnessed price reductions
The price cuts were implemented on 27 different cars models of different origins, reaching about EGP 200,000 in some cases. Kia Motor Egypt discounts topped the list of Korean cars, where the Egyptian International Trading and Agencies (EIT), the sole distributor of KIA motors in Egypt its June prices.
The list revealed discounts of EGP 100,000 on the Kia Sorento mid-size SUV. Currently, the Sorento official price after discount starts at EGP 649,000, down from EGP 750,000. The second category features with 3500 cc engine currently start from EGP 749,000, down from EGP 860,000, while the Highline version starts from EGP 849,000 down from EGP 960,000.
Accordingly, Hyundai also saw further price reduction, where the Tucson, which comes in seven different categories, equipment and prices, witnessed a discount of up to EGP 25,100, across all categories.
Ghabbour Auto Group, Hyundai exclusive agent in Egypt, announced price discounts on all Elantra models that are locally assembled, ranging from EGP 15,000 to EGP 24,000 across the model’s seven categories.
Moreover, the new Accent prices were slashed by EGP 14,900 to start at EGP 255,000, down from EGP 269,900, while the second category comes at a formal price of EGP 268,900 instead of EGP 282,900.
The third category has its official price tag at EGP 278,000, down from EGP 292,900, while the fourth category is priced at EGP 308,000 down from EGP 322,900, and the highest category is offered a discount to reach EGP 335,000, down from EGP 349,900.
All categories of Hyundai Elantra AD saw discounts of EGP 3,000 on all its seven categories.
On the other hand, GB Auto offered discounts on several Mazda models by up to EGP 31,000. The price of Mazda 3 Facelift 2019 1,600 CC is offered at EGP 309,000, down from EGP 340,000, while the hatchback version of the model price was down by EGP 31,000, sold at EGP 373,000 down from EGP 404,000.
Russian automaker, Lada joins the cuts through deducting the prices of Granta 2019 family sedan model by EGP 1,000 in June to sell at EGP 147,000.
In regards to other EU cars, Italian Alfa Romeo revealed price cuts on three models at varying rates amounting to EGP 200,000. The first of which is the Giulietta1.4 which witnessed a huge decline of EGP 70,000, to reach EGP 389,000 down from EGP 459,000.
While the Giulia 2.0 A/T Turbo Base new price was down by EGP 140,000, to reach EGP 635,000, and it’s second category Highline witnessed a decline of EGP 155,000, to sell at EGP 695,000.
As for the Alfa Romeo Stelvio equipped with a 2.0 engine, it saw the highest discount, losing EGP 204,000 of its price to reach EGP 895,000 down from EGP 1.099m.
Moreover, Opel prices also fell, where Opel Grandland price fell by EGP 30,000 to start at EGP 450,000 for the Turbo Elegance instead of EGP 475,000, down by EGP 25,000, while the second category HL is now sold at EGP 485,000, down from EGP 510,00, and the Grandland T-L received an EGP 30,000 discount to sell at EGP 520,000, down from EGP 550,000.
The Opel Astra sedan 2019 is now also sold at EGP 315,000, down by EGP 14,000 from EGP 329,000.
As for the Insignia in three different categories, the Elegance is sold at EGP 485,000, down from EGP 510,000, while the second line HL is sold at EGP 520,000 down from EGP 550,000, and the T-L is down to EGP 600,000 from EGP 630,000.
On the other hand, the French automaker also slashed prices, reducing the price of Peugeot 508 new shape 2019 by EGP 10,000.
The Peugeot 301 sedan 2019 is also down by EGP 10,000 across all categories, while the Peugeot 2008 Crossover Active Pack 2019 was granted a discount of EGP 5,000 to sell at EGP 314,990, down from EGP 319,990, and the Peugeot 5008 models fell in all four categories by EGP 25,000.
The French car Renault joined the list, reducing the prices of the first category E2 of Megan Sedan by EGP 35,000, now selling at EGP 293,000 down from EGP 328,00, while the E2 + is sold at an official price of EGP 333,000 instead of EGP 363,000.
On the American side, Al-Mansour Automotive, Chevrolet exclusive dealership in Egypt, has offered discounts of up to EGP 40,000 on all Malibu categories.
Prices of BYD, Chery, MG, and Zotye have all fallen
Al-Amal decided to reduce the price of the BYD S5, a locally assembled SUV, by EGP 20,000 in June, lowering the official price to EGP 290,000. Additionally, the new F3 BYD price fell by EGP 1,000 to start at EGP 177,000, down from EGP 178,000.
As for Chery, the standard Arrizo 5 sedans fell by EGP 10,000 to reach EGP 219,900 down from EGP 229,900, while the highest category of Arrizo 5 was down by the same rate, settling at EGP 229,900 down from EGP 239,900.
On the other hand, locally assembled SUV, Chery Tiggo 3 was down by about EGP 10,000, reaching EGP 225,000 down from EGP 235,000.
The MG brand also slashed prices by EGP 40,000,
After the reduction, the sedan MG 360 is offered at EGP 280,000 for the Turbo STD model, while the Turbo Comfort price was down by EGP 30,000 to EGP 320,000. The MG6 Turbo Luxury was also granted a discount of EGP 30,000 to reach EGP 350,000 down from EGP 380,000.
Moreover, Zotye also saw reductions on the 2019 and 2020 models alike, where the Zotye T600C Royal 2019 was down by EGP 10,000 to sell at EGP 337,990, and the Zotye T600G Luxury 2020 was also down by EGP 20,000 to sell at EGP 309,990, while the Royal was down to EGP 355,000.
The 2020 T300 models come in the same integrated equipment, falling by EGP 5,000 each.
The benefits did not stop at falling prices
Several 2019 models came with cashback rewards, where the company pledges to pay part of the price back to clients during a specific period. The National Motors, Glory exclusive dealership in Egypt, offers EGP 5,000 cashback on the 350 models.
The company said that the offer is available on the half option model until the end of June, where cash-paying customers receive back EGP 5,000 after licensing the car.
