Egypt's car market hit by overpricing

Owing to weak purchasing power and increasing concerns about rising car prices, overpricing (selling a commodity for more than its market value) has returned to the market with certain brands reaching up to LE60,000 in additional costs.
Supply and Demand Policy
A member of the Automotive Division of the Chambers of Commerce, Alaa al-Sabaa, explained that balanced demand for cars will appear in the second half of the year.
He noted that the scarce supply in some types of cars is what causes the selling price to be overinflated, in addition to the increase in demand.
With the application of reservation lists at car manufacturer dealers, which are subject to market fluctuations and continuous price changes based on the dollar price, car dealers resort to raising prices to compensate for what they spend on customs to allow vehicles to enter the country.
Assuming the currency value remains stable and the exchange rate does not change during the coming period, Sabaa expects the car market to witness a major breakthrough and a decline in car prices.
Effects of rising car prices
Car prices are subject to supply and demand, and in some cars the value of the added increase ranges between LE10,000-30,000.
In light of the confusion caused by the suspension of import operations, agents of international companies determine the value of the increase based on the price of the US dollar against the Egyptian pound.
Since June and July, the dollar has taken an upward curve that began with a jump to LE47 after the local currency was floated in March and lost about 60 percent of its value.
As a result of inflated car prices, many citizens have turned to motorcycles as a means of transportation at an affordable price.
Edited translation from Al-Masry Al-Youm

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