The head of the Egyptian Automobile Dealers Association, Oussama Aboul-Magd, said that Egypt will experience an increase in car prices in the near future.
He explained that the reasons for the increase are due to the various economic and political crises around the world, including the coronavirus pandemic, but assured that there are solutions and that Egypt can learn from the experience of other nations in the management of this problem, such as Morocco.
In a telephone interview with the Etc television channel on Tuesday, Aboul-Magd said the state was carefully handling the issue due to the scale and sensitivity of the automotive sector.
The Federal Reserve’s decision to raise interest rates by 0.5% drove new car prices higher for the second time since March in the local market, prompting a large number of buyers to search for cars second hand.
The Egyptian Association of Car Dealers of the Federation of Egyptian Chambers of Commerce in Egypt confirmed that sales of small used cars have recovered over the past month, although their prices have increased by 10 to 15 %, depending on the quality and type of vehicle. auto.
Aboul-Magd predicts that the new increase in car prices will reach 20% by the end of 2022.
The Russian-Ukrainian conflict caused a shortage of Russian gas for factories in the European Union, and as a result problems arose in the shortage of thousands of goods and various products, including cars.
Aboul-Magd assured that the Consumer Protection Agency intervened to protect citizens against excessive prices, and ordered that showroom owners have the advertised price on the car identical to the price indicated on the issued invoice. by the seller to the buyer, and punish those who violate this with a fine of up to two million pounds.
He said that eliminating excessive prices and unofficial car prices requires fixing the profit margins of the auto trade at its various stages.