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Cautious optimism for auto industry in Egypt

A report by Oxford Business Group (OBG) has said auto sales in Egypt have been hit by the recent political instability and economic slowdown, but pent-up demand is expected to help the recovery accelerate from its currently sluggish pace. Overall vehicle sales in the country rose 4.4% year-on-year in May to around 15,465 units, two-thirds of which were passenger cars. Many automobile industry analysts expect sales to rise by up to 10%, despite GDP expansion remaining low, OBG said. Egyptian auto industry received a big boost in February when the biggest independent carmaker in the Middle East is GB Auto singed a deal with China's Geely for the establishment of a CKD assembly operation in the country. The factory aims to export across North Africa – further strengthening Egypt as an automobile manufacturing base, the report said.