The roads of Egypt are occupied by 4 million vehicles with an expected lifetime of more than 10 years. This long ownership, partnered with rough road conditions, results in a deteriorating general vehicle condition and lends to an increase in the need for aftermarket products and services.
The Egyptian authorities are currently taking aggressive steps to nurture a local automotive and parts market and increase vehicle safety. As an example, the Government lowered customs duties on car parts and accessories to a minimum of 10% in many cases. Lower customs duties will encourage Egyptians to purchase new car parts rather than have old parts rebuilt.
As a result of these changes, industry specialists and major players are expecting the auto parts industry to flourish in the coming years. These changes will provide growing opportunities for international companies to view Egypt as a promising sales channel, as well as consider Egypt as a regional production hub. |
