The dollar and shipping ignite car prices in Egypt... and the “overprice” returns

Listen to the article. The audio text is automated, generated by an automated system

A new wave of price increases hit the car market in Egypt during the past few days, with a number of agents and dealers announcing increases ranging between 15,000 and 150,000 pounds on a large number of models, coinciding with the rise in demand and the decline in supply, according to what sector officials said who spoke to Al Arabiya Business.

The new developments in the market were not limited to price increases only, but also extended to the return of the “overpriced” phenomenon to the forefront, with values ​​ranging between 10,000 and 200,000 pounds above the official prices, according to officials.

A survey conducted by “Arabiya Business” of car price lists during this October monitored that dealers and agents applied increases on models belonging to 8 brands, namely “Skoda”, “Debal”, “MG”, “Kia”, “Hyundai”, “Changan”, “Haval” and “Chery”.

According to the survey, the 2027 Skoda Octavia recorded the highest percentage increase in value after it rose by 150,000 pounds compared to the 2026 model, while the prices of some MG models increased by about 60,000 pounds, and the Dybal G318 and Kia Seltos by about 50,000 pounds, with increases varying according to model and category.

The head of the Automobile Dealers Association in Egypt, Osama Abu Al-Magd, said that the prices of some cars in Egypt have risen by rates ranging between 5% and 10% since the beginning of this October as a result of movements in the price of the dollar and the rise in shipping and marine insurance costs, in addition to some restrictions imposed on imports.

Abu Al-Majd explained to Al Arabiya Business that regional unrest affected shipping routes and costs globally, and raised ship insurance rates, which increases the burden on car importers.

A member of the Automotive Division of the Federation of Chambers of Commerce, Montaser Zaytoun, agreed with him, who attributed the decline in the supply of cars in the Egyptian market to the cessation of some shipping companies from operating flights on certain routes, and international suppliers reducing the quantities of cars supplied in anticipation of the risks that shipments may face during their journeys, in addition to the rise in shipping and insurance costs by more than doubling.

Zaytoun added to Al Arabiya Business that some suppliers are reducing the quantities supplied to the markets, declining in some cases from a thousand cars to only about 200 cars, which is putting pressure on the available stock.

In turn, the Secretary-General of the Association of Automobile Manufacturers in Egypt, Khaled Saad, believed that the price of the dollar represents the main factor in increasing prices, given the dependence of the import cost on the American currency, while the increase in shipping and insurance costs adds new burdens to importers.

In addition, the official increases in car prices coincided with some consumers’ desire to buy in anticipation of the implementation of new increases, amid a decline in supply in the market, which contributed to the return of the “overprice” phenomenon, according to what officials said.

Zaytoun added that the “overprice” affected about 80% of the brands, with values ​​ranging between 10,000 and 200,000 pounds above the official prices.

“Some “Gator” models, whose official price is less than two million pounds, witnessed an application of overprices of up to 200 thousand pounds, and the phenomenon also included brands including Hyundai, Kia, and MG,” according to Zaytoun, who attributed this to a decline in supply and an increase in consumers’ fears of new price rises, in conjunction with some suppliers reducing the quantities supplied to the market.

For his part, Saad said that dealers' concerns about the high cost of purchasing replacement cars may prompt some of them to keep inventory instead of selling it, which limits supply and increases pressure on prices.

Abu Al-Majd agreed with him, considering that the lack of clarity in price trends in the coming period is pushing some merchants to wait and postpone selling, due to the difficulty of estimating the opportunity cost.

Car sales in Egypt increased by 22% during the first nine months of this year compared to the same period last year, according to Abu Al-Magd, who expected sales to exceed 200,000 cars by the end of 2026.

Despite the remarkable growth, Abu Al-Majd believed that the market was still below its previous levels, when it reached 240,000 cars in 2010, considering that reaching 300,000 cars annually would be an indication of achieving real growth.

The three officials had different views on the direction of car prices until the end of the year, as Zaytoun expected a new wave of price increases if the dollar rose to 55 pounds.

For his part, Abu Al-Majd expected price pressures to continue as long as regional unrest persists, in light of the impact of dollar movements and high shipping and insurance costs on the cost of imports.

As for Saad, he expected prices to decline or the market to stabilize at its current levels, provided that the situation in the region stabilizes, shipping traffic is regular, and the price of the dollar declines.