Cairo, January 12 (Xinhua) -- Recently, there have been significant changes in the Egyptian automobile market: the situation of high prices and tight supply in the past has gradually reversed, the market supply is becoming increasingly sufficient, and prices are becoming more reasonable. More ordinary households are starting to afford new cars. In this positive transformation, Chinese automobile brands have played an important role.

At the same time, Chinese car companies are committed to establishing long-term win-win relationships with local partners by improving local assembly levels, strengthening brand building, and improving after-sales services.

This is a new car photographed on January 15, 2025 at the Geely Automobile Egypt factory in October 6th City, Giza Province, Egypt. Photo by Xinhua News Agency reporter Wang Dongzhen

If you don't sell one or two Chinese cars on your behalf, you'll feel anxious

The reporter learned that since 2000, some Chinese car companies have gradually achieved localized production. According to the Egyptian Automobile Dealers Association, in the passenger car sector, Chinese brand car sales reached 30441 units in 2024, a year-on-year increase of 37.3%. In July 2025 alone, Southeast Motors, Chery Automobile, and Dongfeng Motor held three consecutive press conferences in Egypt, launching 18 new cars.

The vast majority of these 18 new cars are priced below 1.5 million Egyptian pounds (approximately 230000 RMB), which is an acceptable price range for Egyptian consumers.

Luo Yuanren, General Manager of Jetour's South African subsidiary and Regional Sales Director for East Africa, said, "With the launch of this batch of vehicles, coupled with numerous models scheduled to be launched in the first half of 2025, more and more Chinese car brands are entering Egypt, becoming the preferred choice for Egyptian consumers

Hu Peizhang, the market manager of Southeast Automobile in Egypt, said, "Egypt has a population of over 100 million and a high proportion of young people, with a huge potential consumer group. At the same time, the car penetration rate in Egypt is relatively low, which means that the huge demand for first-time car purchases and upgrades has not yet been released. With the acceleration of economic development and urbanization, the demand for cars in Egypt is expected to see significant growth

Alamal Company in Egypt is the agent of BYD Company in China. Its chairman and CEO, Amr Suleiman, believes that the characteristics of Chinese cars are fine workmanship, good product quality, and advanced configuration. Chinese cars represent the future. If we don't sell one or two Chinese cars on our behalf now, we will feel anxious

On January 15, 2025, workers were working on the production line of Geely Automobile Egypt factory in October 6th City, Giza Province, Egypt. Photo by Xinhua News Agency reporter Wang Dongzhen

Add 5 new car assembly plants within 7 months

Over the past few years, the Egyptian economy has suffered from a shortage of foreign exchange. The Egyptian government has imposed restrictions on car imports in order to save foreign exchange expenses, causing dealers to hoard cars and sell them sparingly. As a result, there is a shortage of new car supply on the market, and prices have risen accordingly. Consumers need to book cars in advance, and if they want to pick up their cars as soon as possible, they will have to raise prices.

After years of soaring prices, supply shortages, and market distortions, the Egyptian automotive market is undergoing significant changes, with car prices gradually decreasing. Ahmed Nasser, the sales manager of a well-known car sales company in Egypt, said that more and more Chinese cars entering the Egyptian market have played a positive role in the trend towards reasonable prices, especially in the fields of economy sedans and hatchbacks.

We are entering an era characterized by local manufacturing and full competition, which is good news for both consumers and the national economy, "said Osama Abu Majid, head of the Egyptian Automobile Dealers Association

In addition to competitive factors, the strengthening of the Egyptian pound exchange rate, the increase in localized production, and the decrease in shipping costs have provided space for car price reductions. Suleiman and Majid both believe that the decline in Egyptian car prices is not a short-term trend and is expected to continue until at least 2026.

In addition, foreign car companies have seen a surge in investment in Egypt. According to reports, at least five foreign car manufacturers have announced an increase in investment in Egypt.

More and more international car brands are partnering with local agents to assemble cars locally in Egypt, "Majid said. By 2025, Egypt will add five new car assembly plants within seven months.

On June 27, 2025, at the Automotive Engineering College Training Center of Tianjin Transportation Vocational College, Guo Zhenkai (left) operated a fault diagnosis instrument under the guidance of teacher Zhou Fan to troubleshoot vehicle faults. Recently, the first batch of Egyptian Luban Workshop international students graduated from Tianjin Transportation Vocational College. Guo Zhenkai, a 20-year-old youth from Cairo, Egypt, successfully obtained his first graduation certificate in China. Photo by Xinhua News Agency reporter Sun Fanyue

Chinese brand cars need long-term strategy to deeply cultivate the Egyptian market

According to the Egyptian Automobile Dealers Association, in 2024, among the passenger cars sold in Egypt, CKD (referring to cars imported in a completely disassembled state and then assembled into complete vehicles) cars increased by 31.7% year-on-year, while CBU (imported vehicles) cars only increased by 5.2% year-on-year.

Local assembly can significantly reduce the cost of automobiles. The import of whole vehicles faces high tariffs, and fuel vehicles need to pay tariffs ranging from 40% to 135% depending on their displacement. If disassembled and assembled locally, the tariff cost will be significantly reduced. The tariff rate for car engines, transmissions, and bodies is 2%, while the tariff rate for other components ranges from 5% to 12%.

After local assembly, our tariff cost can be reduced from about 40% to between 7% and 9%, "said Luo Yuanren.

Behind the tariff differences is Egypt's national strategy for developing its domestic automotive industry. The Egyptian government launched the National Automotive Industry Development Plan in 2022, aiming to promote international car companies to build assembly factories in Egypt by setting import tariffs higher than those for individual parts. By increasing the requirement for localization, it will drive the development of the automotive parts industry and ultimately build a regional center for automotive production and export.

Currently, several Chinese car brands have established or are preparing to establish local assembly factories.

Egyptian car sales manager Nasser said, "Chinese cars have excellent quality and highly competitive prices. I believe that more and more Chinese cars will sell well in the Egyptian market, especially those manufactured or assembled locally

Khalid Jishi, Vice Chairman of Jishi Group in Egypt, believes that in the long run, Chinese car companies need to increase investment in brand building, after-sales service, and customer-centric service experience in order to achieve greater development in the future Egyptian market.

Editor: Lu Jiaqi