Recently released market study: Egypt Autos Report Q3 2010

New Transportation market report from Business Monitor International: "Egypt Autos Report Q3 2010"
 
July 18, 2010 - PRLog -- The global economic crisis was a blow for Egypt's automotive sector, but it was not as badly affected as in many other countries. A significant drop was registered in sales in 2009, to 200,000 units, while production dipped somewhat to103,408 units, according to BMI figures. But both are now on the rise, though it is likely to be 2011 before they outstrip pre-crisis levels. Again, this is a better performance than many other emerging markets. Egypt can leverage on its large population, high levels of growth and rising banking penetration. On the other hand, underemployment, a top-heavy state sector, corruption and widespread poverty restrain a market with great potential. Overall, BMI expects total car sales to climb 12.6% this year to 225,200 units.

Consumer Confidence is increasing rapidly. In Q110, the 'Nielsen Global Consumer Confidence Index' clocked a 24 point rise to 95 in Egypt, the biggest increase worldwide, as reported by Zawya in June. It appears that Egyptian consumers, while affected by the recession, see a bright outlook. Confidence is just two points short of the pre-crisis peak of 94 registered by Nielsen in Q307. The report noted that renewed growth and increased confidence indicated rising disposable income, which should give Egyptian consumers more scope to invest in cars and take out auto finance.

Some Egypt-based producers are bullish. GB Autos, Egypt's largest public carmaker, claims that its profits will double to almost US$100mn in 2010 as it focuses on exports to the Middle East and Africa (MEA) and starts selling vehicles in Iraq. The firm expects growth to continue and accelerate into 2010. But GB Autos expects demand in its home market to expand by 25-30% year-on-year (y-o-y) in 2010 to exceed 200,000 units. GB's doubling of sales and surge in profit for Q110, echoes BMI's view that Egypt's auto sector is on track for a recovery in 2010 and sustained strong growth for the remainder of our five-year forecast period.

BMI believes that local carmakers have had a period of adjustment to increased imports, as the country began reducing tariffs in 2004 under the WTO's General Agreement on Tariffs and Trade (GATT). Total vehicle sales rose 69% in 2005 and maintained double-digit growth until the economic crisis hit sales in 2009. By 2019, tariffs should be eliminated for GATT signatories and we expect average annual growth of 17% for at least the next five years.

But BMI also suggests a strong threat to local producers may come from the arrival of Chinese manufacturers with domestic operations. Chinese firm Great Wall Motor, which has operations in Egypt, has been granted export rights to the EU for four of its models. This is the first time that Chinesedeveloped brands have been given free access to EU markets, and is therefore something of a milestone, as Chinese brands look to expand their presence on European markets, which are lucrative but have stringent entry standards. While Egypt has little history as a vehicle exporter to Europe, its low-cost workforce and position on the Mediterranean could pay dividends.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/72738_egypt_autos_report_q3_20...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Egypt Auto Industry SWOT
- Egypt Political SWOT
- Egypt Economic SWOT
- Egypt Business Environment SWOT
Regional Overview
- Change Ahead For The GCC
- Trouble In South Africa And Turkey, Uncertainty In Iran
- Impact On Production
Business Environment Ratings
- Middle East And Africa Business Environment Ratings
Industry Forecast Scenario
- Production And Sales
- Egypt Automotives Historical Data & Forecasts
- Egypt Automotives Historical Data & Forecasts
- Trade
- Egypt Automotives Historical Data & Forecasts
Macroeconomic Forecast Scenario
- Table: Egypt - Economic Activity, 2007-2014
Competitive Landscape
- Manufacturers - Passenger Cars
- Commercial Vehicles
- Egypt - Commercial Vehicle Market By Segment, 2005
- Suppliers
Company Monitor
- Regional Case Study: Nissan Motor
- Production
- Table: Nissan MEA Production Facilities
- Sales
- Table: Nissan MEA Distributors
Company Profiles
- General Motors Egypt (GM Egypt)
- Manufacturing Commercial Vehicles Company
- Toyota Motor
- Nissan Motor
- Ford Motor
- BMW
Country Snapshot: Egypt Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2010
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012
BMI Methodology
- How We Generate Our Forecasting Model
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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