A number of car dealerships have re-priced their models at 23 pounds to the dollar; This is in an attempt to face the rise in global inflation and increase their operating expenses, as well as to compensate for the financial losses they incur due to the decline in the number of quantities supplied by global factories once morest the background of restrictions imposed on import operations.
An official source in a Japanese car company said that European companies have raised the prices of their models in an attempt to compensate for the decline in sales by increasing profitability rates, saying that the gains of some models may reach 300,000 pounds per vehicle.
The source, who preferred not to be named, added that a number of car dealerships were limited to sales through their branches and showrooms, as well as reducing the total quotas and quantities supplied to distributors.
He pointed out that the successive price increases imposed by car companies on their models had a negative impact on consumers’ purchasing decisions, with sales stagnating at rates exceeding 50%.
He added that global reports indicate an increase in the severity of the rise in global inflation due to the repercussions of the “Russian-Ukrainian” war, which negatively affected the supply and supply chains of various commodities, raw materials, components of production, and their high prices. This caused a decline in production capacity in global factories.
The source referred to talk regarding some distributors taking advantage of the crises facing the car market due to the lack of quantities supplied and offered within the local market, by imposing sums of money on vehicles sold to consumers under the name “Over-Price”, with a value of more than 700 thousand pounds per vehicle for some brands. .
According to data issued by the General Traffic Department, the number of licenses for “owner” cars in Egypt decreased by 52% to 12,246 vehicles in various traffic units during the month of June, compared to 25,686 units in the corresponding period of the previous year.