High interest rates impact car purchases in Egypt: Dr Greiche CEO

CAIRO - 12 November 2023: The high interest rate in Egypt, currently at 21 percent, consumers find it very difficult to buy cars which affects the Original Equipment Manufacturer (OEM) industry, CEO of Dr Greiche, Chahir Greiche said.

 

Egypt’s Monetary Policy Committee (MPC) kept the interest rates unchanged during its meeting in November with the overnight deposit rate at 19.25 percent, the overnight lending rate at 20.25 percent, the main operation rate at 19.75 percent, and the discount rate at 19.75 percent.

 

He added that the auto glass industry is heavy in the spare part industry, and suppliers need to focus on the after-sale market to reach the final consumer.

 

“In the African market, there's not huge capacity building for OEMs yet, so spare parts suppliers need to set themselves apart to mitigate prices,” he said, adding that items like batteries, tires, and laws are like low-hanging fruits, things that the final consumer can understand about the car.

 

He clarified that developing a supply chain and distribution over Egypt with more than 135 centers and workshops has given his company a significant market share.

 

Greiche urged to encourage distribution after seeing the market to support suppliers for long-term success

 

As for Dr Greiche, he said that the company has been a huge market for years, producing different kinds of glass for the automotive and inspection industry.

 

“We started this journey 40 years ago with General Motors, followed by different OEMs, and one supplier with about 95 percent market share,” he said. 

 

This came during the events of the African Automotive Forum, held on the sidelines of the Intra-African Trade Fair, IATF2023, hosted by Egypt from November 9 to 15. 

 

The IATF2023, which is the third edition of the Intra-African Trade Fair, provides a platform for businesses to access an integrated African market of over 1.3 billion people with a GDP of over $3.5 trillion created under the African Continental Free Trade Area, according to the African Union.