The Head of the General Automobile Division at the Federation of Egyptian Chambers of Commerce Omar Balbaa outline the reasons behind why car prices have been rising both in Egypt and worldwide, impacting both the seller and the consumer.
During his interview with the privately-owned ETC satellite channel on Sunday evening, Balbaa explained that this was caused by a decrease in the volume of production since the coronavirus pandemic and excaberated by then Russian-Ukrainian war, as both nations manufacture parts of cars, in addition to the high cost of shipping.
Balbaa addressed Egyptian President Abdel Fattah al-Sisi, saying: “I thank President Sisi for encouraging local products and nationally-made cars, because they may be a solution to the problem of increasing car prices.”
Montaser Zaitoun, a member of the Board of Directors of the Egyptian Automotive Dealers Association, said that coronavirus crisis and the closure of factories are also behind the rise in car prices.
Zaitoun explained that the prices of freight and car insurance have risen significantly, stressing that the solution to the problem of high car prices would have been resolved without the Russian-Ukrainian war.
The recent crisis of high car prices, which happened in a short period since the beginning of April, for different brands, was driven by local and other global reasons, explained the head of the Automotive Dealers Association Osama Aboul Magd, stressing that the rise in car prices during 2022, ranges between 10-15 percent and is expected to reach 20 percent at the end of the year.
The Russian-Ukrainian conflict caused a shortage in Russian gas for the factories of the European Union, and consequently problems appeared in the shortage of thousands of goods and various products, especially cars.