CAIRO: In a sign that the economic crisis is slowing even Egypt’s previously roaring auto market, the Formula Al-Ahram 2009 motor show, opening today at the Cairo International Convention and Exhibition Center, will be smaller and quieter than in past years, according to organizers.
While the number of brands and exhibits at the show is growing, Hosni Fouad, managing director of Art Line, the company organizing the event, said he is expecting slower traffic at the annual show this time around. Last year, nearly 170,000 people attended; Fouad expects this number will fall to between 120,000 and 140,000 this year.
“We know the economic situation very well, he said.
Organizers have cut ticket prices in half – from LE 20 to LE 10 – to encourage more people to come. In perhaps the most symbolically potent development, the fireworks show will be canceled.
Still, the conference, sponsored by state-owned newspaper Al-Ahram and Art Line, which has organized the show since 1990, will have some new attractions in its 16th year. Exhibits will include such topics as “3-D metrology, “signal processing, “environment simulation and “mechanical measuring.
Art Line has worked with Al-Ahram as a joint venture since 2004. Since then, the makeup of the show has changed significantly, along with the global car market, Fouad said.
“Since Al-Ahram joined us, a big number of Chinese companies have appeared in the market, he said. “In 2004 we had only two or three. This year, we have approximately 12 Chinese brands.
Last year the event planners began offering a special area for classic cars, which turned out to be one of the most popular exhibits. This year they are displaying 25 models ranging from the years 1934 to 1976, in a 1,000-square meter space.
“The impression I had last year was that many people, even young people, like to sit for hours watching these cars, Fouad said.
The organization also introduced a small area for 4x4s, including five brands last year. This year, 14 brands will be included.
Five banks are participating in the company’s auto loan booth, another first for this year’s show. “This is new, all the other years we had only one bank as a sponsor, Fouad said. This year, Mashreq, the Bank of Alexandria, the Arab African International Bank, ABC Bank, and Egyptian-Saudi bank will set up booths to offer loans.
An affiliated group, AMC Promotion, organizes a similar Paris event each year. But in comparison, the Egypt show is far more modest, mostly owing to lack of space, Fouad said. “That’s why we are using the gallery and all of the halls, Fouad said.
As the economic downturn slows consumer spending on cars, luxury brands are marketing aggressively in Egypt, Fouad said. This includes Mercedes-Benz, who is introducing the 1.6-liter engine C180, which similar to the C200, but cheaper at LE 300,000.
“If you are facing hard times like this, you have to make more publications, more events, because the market is decreasing.
In his estimation, these brands are doing better now than cheaper models. “For the smaller segments, between LE 50,000 and LE 100,000, I think all the people in this market are facing a hard time, he said.
The International Organization of Motor Vehicle Manufacturers, The Global Association of the Exhibition Industry, Egyptian Automobile Manufacturers Association, Egyptian Auto Feeders Association, Automobile & Touring Club of Egypt, are also involved in the organization of the event.
Brands on display will include Mercedes-Benz, Suzuki, Peugeot, Subaru, Hyundai, Porsche, Land Rover, Audi, Volkswagen, Nissan, Toyota, Kia, as well as the Russian brand Lada and Iranian brand Saipa.
The show opens tonight with a gala event, and will be open to the public from Jan 22 to 25, from 11 am to 10 pm.
