8 foreign car companies stopped supplying their production to their agents in Egypt at a time when producers globally suffer from a scarcity of production due to supply chain disruptions, other than the electronic chip crisis, as a result of the repercussions of the Russian-Ukrainian war and the Corona pandemic.
A number of global factories decided to direct Shares of agents in Egypt for other markets You may accommodate loads of different brands.
One of the European car dealerships, which holds the largest share of the middle segment, said that most foreign companies stopped supplying their shares to their agents in Egypt during the past two months, explaining that the parent companies fully understand the current economic situation, quoting the Egyptian newspaper, Al-Mal.
Al-Wakeel added that despite the decline in demand for cars locally and globally, the production rate for factories of different brands is less than the volume of market demands, which opens a way to divert the shipments produced to other markets.
He explained that the local agents are the most affected by the production diversion, for reasons related to the difficulty of convincing companies once once more to allocate quantities to the markets in Egypt in case of a breakthrough in imports.
He stated that all countries of the world are going through an exceptional economic situation, which he described as difficult, due to the negative repercussions of the Ukrainian war, which makes all international and local entities and companies fully understand the surrounding circumstances, calling for the need to announce a clear trend regarding import for a specific period of time so that agents can reconcile their conditions. with her.
In the same context, one of the authorized distributors of many European brands revealed the trend of a number of international car companies to stop the production and export of their models to the local market during the next June and July, due to the failure of their local agents to pay the financial dues for those shipments.
The distributor confirmed that some agents of European car brands, including “Citroen, Volkswagen, Skoda, Seat, Audi, Peugeot, Fiat, and DS,” have notified their distributors regarding the lack of total quantities and quotas supplied to them, claiming that the mother factories will stop producing them for Egypt during the next two months.
He explained that all car agents and importers are experiencing great difficulties in the import business through the inability to contract any new shipments with international companies for a period that may range from two months until now, due to the procedures and restrictions imposed on import operations, expecting the gap between supply and demand mechanisms to widen dramatically. In the coming weeks, the stock will run out at local agents.
Another distributor indicated that the foreign markets in which a number of local car dealerships operate will be a lifeline in the face of discharging the shipments produced from the parent companies, while maintaining the agreed upon quantities with international factories.
He said that there is a tendency for some local agents to re-export their quantities of production to the Gulf countries, by using the UAE and Jordanian markets to be a regional center for re-exporting to the region’s markets.
He expected that the size of the car market in Egypt would diminish, with sales shrinking by more than 50% in the coming months, with the sharpening of the declines gradually increasing due to the lack of stock of different models.
It is likely that the car market will witness the exit of a number of small traders during the coming period, due to their inability to obtain quantities to sell, provided that the large and medium-sized companies will be able to hold out for a while.
