User:Lqfff777/draft

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The automotive industry in Egypt has been developing for 50 years. It now becomes the second biggest market in Africa.

History[edit]

The automotive industry in Egypt started from 1960 which the Egypt government started the first automobile company called EI Nasr Automotive Manufacturing Company.[1] It is the first Arab vehicle manufacturer and it is state owned. [1]The company mainly produce the Fiat-based vehicle due to the engineering and design problems and the company also assemble foreign licensed cars under its brand.[1] After years development, they came up their own product such us Nasr 128 GLS which was the best-selling model at that time.[1]

Many foreign companies entered Egypt automobile market in 1980's due to the open-door policy of government. In 1985, the General Motors (GM) started a joint venture with Al-Monsour Automotive Company which was a local importer and car dealer in Egypt.[2] In the beginning of the 1990's, the Egypt government adopted the Economic Reform and Structural Adjustment Program(ERSAP).[3] It attract many foreign company entered the Egypt market to build their factories and assembly lines.[3] There are many big companies such as Citroen, Fiat, Hyundai, Mercedes-Benz, Nissan, BMW and so on.

In 2010, the production was increased to 116,683 and it was the best time in Egypt automobile industry.[4] However, due to the political changes, the production went down for 30% next year and all the way to 2017 and the total car production in 2017 is only 36,640.[5]

Car-manufacturers in Egypt   [edit]

In 1980's, EI Nasr Automotive Manufacturing Company is the only giant manufacturer in the whole Egypt market. There are now 83 car-manufacturers in Egypt.[6]

Domestic automotive industry   [edit]

Automotive Industry is one of the most important industry in Egypt and it bring a lot of benefits for the economy of the country. There are more than 15 car assembly factories and 75 facilities in country providing more than 75,000 job opportunities.[7] It has the capacity to produce 300,000 cars and buses per year.[7] Especially, It is an under-penetrated automobile market with large numbers of young population. There is only average 35 Egyptians owning a car out of every 1000 and the demand is increasing every year.[7]

Market[edit]

Production[edit]

As a 90 million population country, the production that only average less than 10,000 per year is unable to keep up with the demand. The production in South Africa is 10 times larger than Egypt and the production in Morocco is 5 times larger than Egypt[8]. In the 2002, the total number of the production car in Egypt was 45,073.[9] In 2010, the number was increased to 116,683 and it was the best time in Egypt automobile industry.[4] However, due to the political changes(January 25 revolution), the production went down for 30% in 2011.[8] And the total production in 2017 is only 36,640.[5] But the government has strong confidence to boost the car industry in 2018. And the market has given its feedback which the production of total vehicle went up for 90%.

Selling[edit]

The best-selling year of Egypt automobile industry is 2015 which sold 349,100 new vehicles.[10] And the total selling number of 2005 is 121,437 which is the worst-selling year.[10] Compare to other two major countries (South Africa and Morocco) in Africa. Egypt comes in second place in the selling market only behind South Africa and followed by Morocco.

In 2017, Chevrolet is the best-selling brand with 22.3% of the automobile market which sold 21,468 cars, despite a 34.7% decrease in its sales compared to the same period in 2016, when it recorded 32,890 cars.[11] And Chevrolet made 23% of total car sales and sold 19,200 cars, compared to 29,500 in 2016 in the first eight months of 2017.[11] Nissan was ranked number two and sold 15,847 vehicles, accounting for 16.5% of total sales during the first nine months of 2017.[11] Hyundai won third place with 13,613 vehicles, accounting for 14.1% of total sales for the same period.[11] Toyota sold 7,930 cars with a market share of 8.2%.[11] Mitsubishi came in fifth place with 4,804 sold units and 5% of the market, followed by Chery in sixth position, with 4,419 cars accounting for 4.6% of car sales.[11]

Government influence[edit]

The Egyptian revolution on 2011 so called January 25 revolution. It is a revolution about overthrowing the Hosni Mubarak government. During that period, it made a significant harm to the automotive industry in Egypt.

Nissan suspended their production in Egypt for safety reason after government protests.[12] Many Korean companies such as Samsung, LG and Hyundai Motor had to give up their normal business in Egypt due to the spread of protests, and a lot of employees were forced to go back to Korea or to a third country.[12] BMW sent back German nationals to their country because of the violent-demonstrations. Other automakers like Daimler and GM had temporarily suspended operations. [13]Due to the political changes, the production went down for 30% in 2011.[8]

Reference[edit]

  1. ^ a b c d "Comeback car". Al Ahram Weekly. Retrieved 2019-05-12.
  2. ^ "Chevrolet Media - Egypt - Company Information". media.gm.com. Retrieved 2019-05-12.
  3. ^ a b Zaher, Shadwa. "Automotive industry in Egypt". {{cite journal}}: Cite journal requires |journal= (help)
  4. ^ a b "2010 Statistics | OICA". www.oica.net. Retrieved 2019-05-12.
  5. ^ a b "2017 Statistics | OICA". www.oica.net. Retrieved 2019-05-12.
  6. ^ "Automotive - Car-Manufacturer". www.egypt-business.com. Retrieved 2019-05-12.
  7. ^ a b c "Egypt's domestic automotive industry shows promise". Oxford Business Group. 2016-01-27. Retrieved 2019-05-12.
  8. ^ a b c "2011 statistics | OICA". www.oica.net. Retrieved 2019-05-12.
  9. ^ "2002 Statistics | OICA". www.oica.net. Retrieved 2019-05-12.
  10. ^ a b "Sales Statistics | OICA". www.oica.net. Retrieved 2019-05-12.
  11. ^ a b c d e f "Chevrolet remains top-selling brand with 22.3% of market". www.egypt-business.com (in German). Retrieved 2019-05-12.
  12. ^ a b "Signing into eresources, The University of Sydney Library". login.ezproxy1.library.usyd.edu.au. Retrieved 2019-05-12.
  13. ^ "Signing into eresources, The University of Sydney Library". login.ezproxy1.library.usyd.edu.au. Retrieved 2019-05-12.
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