Posted On: 2022-02-09
SUVs acquired the largest market revenue share in the Egypt passenger car market – 6Wresearch
Rising population along with increased standard of living are the primary reasons contributing to the rising demand for passenger cars in Egypt. Large Egyptian population suggest long-term potential in automotive industry with increase in disposable income of households, a car is no longer considered a luxury but rather a necessity and the reliance on privately owned vehicle is witnessing escalation with rising living standards of people in metropolitan cities of Egypt. Also, the increasing number of people migrating towards urban areas have resulted in the rise in demand for transportation facilities, eventually leading to the rise in the requirement of passenger cars in the past few years.
According to 6Wresearch, Egypt Passenger Car Market size is projected to grow at a CAGR of 10.2% during 2021-2027. Egypt passenger cars market is in the growth stage of industry life cycle wing to the growing disposable income and urbanization in the country. The market would continue to climb up owing to rise in number of registered vehicles and car loans. The Egyptian market has its leading position in Middle Eastern affairs, and its central location bridging three continents: Europe, Asia, and Africa. A ministerial committee, headed by the Minister of Military Production, has been tasked with formulating a national policy with regards to the licensing, registration, importation, local assembling, manufacturing, electric charging, and other aspects of a viable electric vehicles sector in Egypt which would further augment the demand for Egypt’s passenger cars market.
According to Navneet Aggarwal, Manager, 6Wresearch, “The demand for Special Utility Vehicles (SUVs) has risen in latest times because of the growing leisure, tour events and road conditions in Egypt. Thus, SUVs are expected to register the highest growth rate in market in terms of both revenues and volume in the forecoming years on account of the rugged terrains and safety purposes in Egypt. Also, customers are preferring products higher up the price point with more features and comfort facilities.”
According to Ananya Consul, Research Analyst, 6Wresearch, “Imported cars capture major volume share in Egypt passenger car market owing to the final phase of the EU-Egypt Association Agreement which came into effect in January 2019, on account of which imported European passenger cars increased by 37% during the first half of 2019. However, the country is currently expanding in the automotive industry within the framework of the new development movement aimed at enhancing local production capacity in addition to working to start the production of electric cars, as part of Egypt's efforts to achieve the 2030 sustainable development goals. The government of Egypt (GOE) continues to encourage the establishment of automotive feeder industries and domestic production is expected to increase substantially in the coming years.”
Some of the major companies in Egypt passenger car market include Hyundai Egypt, Toyota Egypt Group , Nissan Motor Co., Ltd., Renault Group, General Motors, MG Motor, Volkswagen AG, Mitsubishi Motors Corporation, Ford Motor Company, Mercedes-Benz Egypt S.A.E.
“Egypt Passenger Car Market (2021-2027)” report provides an in-depth analysis with 13 figures and 10 tables, covered in 91 pages. The report comprehensively covers the market by types, imported vs. locally manufactured and chinese origin vs. non-chinese origin. Egypt passenger cars market report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas, market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.