CAIRO, EGYPT — After years of supply shortages, soaring inflation, and currency turbulence, Egypt’s auto market is finally showing signs of a dramatic turnaround. Industry experts and dealers report a sharp decline in vehicle prices and a rebound in inventory levels, signaling a long-awaited correction in one of the country’s most strained consumer sectors.
According to leading analysts, a combination of improved foreign currency liquidity, relaxed import restrictions, and increased local assembly has breathed new life into the struggling industry much to the relief of both car buyers and dealers.
From Drought to Downturn in Prices
Just a year ago, the Egyptian car market was gripped by record-high prices and prolonged delivery delays due to global supply chain disruptions, a lack of hard currency, and restrictive import policies.
Now, prices of new vehicles have dropped by 15% to 30%, depending on the brand and model, while used car values have dipped by up to 20%, reversing a trend that had seen older vehicles sometimes selling at higher-than-new prices.
“It’s the first time in nearly four years that we’ve seen both availability and affordability improve at the same time,” said Tamer Yehia, auto analyst and founder of AutoTrak Egypt.
What’s Driving the Market Shift?
Experts attribute the shift to several key factors:
- Foreign Exchange Stabilization: With improved access to U.S. dollars, importers have resumed shipments, helping replenish empty showrooms.
- Government Policy Adjustments: Recent policy easing on auto imports and duties has allowed more vehicles to enter the country, including electric and hybrid models.
- Local Manufacturing Incentives: Investments in domestic assembly plants, such as those in 6th of October City, have helped stabilize supply chains and reduce reliance on imports.
Consumer Confidence on the Rise
Dealerships report a spike in foot traffic and sales inquiries in recent weeks, particularly for compact sedans and fuel-efficient models.
“Buyers were holding off in anticipation of lower prices. Now that the shift has started, they’re back in the market,” said Ahmed Soliman, manager at a Toyota dealership in Cairo.
However, some caution remains. With elections looming and the global economy still volatile, buyers are wary of making large financial commitments. Still, the perception that “the worst is over” is gaining ground.
Electric Vehicles Join the Race
Egypt’s budding electric vehicle (EV) sector is also benefiting from the rebound. EV distributors like Infinity and Volt Egypt have expanded their showrooms and charging station networks as prices drop and demand grows.
The government’s green initiative including customs exemptions and VAT reductions for EVs is helping to position Egypt as a regional EV hub in North Africa.
Looking Ahead
While challenges remain including high interest rates and uneven income levels the current rebound offers a glimmer of hope for the Egyptian auto market.
“We’re entering a phase of rebalancing and rational pricing. That’s good news for everyone buyers, sellers, and the broader economy,” said Yehia.
As long as fiscal and monetary stability continues, experts believe Egypt’s car market could see sustained recovery through 2026, with renewed consumer trust and broader vehicle choice leading the charge.
