After the announcement of the continued spread of the novel Coronavirus (COVID-19) in China and around the world, car dealers in Alexandria have voiced many concerns over the economic repercussions, the effects it will have on the volume of car sales, and buying and selling in the governorate. All these concerns come at a time when the market is expecting to see an increase in car prices in the coming months. Stocks of cars have run out in agencies, which will lead to a shortage of supplies and an increase in demand, and the auto market in the coastal governorate suffers from the state of fluctuation and confusion over the Egyptian market in general.
Ahmed El-Ashmawy, a sales employee at Jamil Auto Show, said that the volume of car sales in Alexandria increased by 30% compared to the same period last year, and the prices of cars that customers accept to purchase ranges between EGP 130,000 and EGP 500,000, noting that the most prominent brands that witnessed high rates of sales are Chinese and South Korean cars.
He added that the prices of used cars are experiencing violent fluctuations, especially in light of the dollar’s ups and downs, and the price varies according to the car brand, the year of manufacture, and the condition of the car.
He said that the used car market is witnessing a slowdown that exceeds its counterpart of new cars, noting that until now, the car market in Alexandria has not been affected by the spread of the Coronavirus, since a number of exhibitions offer cars from 2018 and 2019, so they have stock. New cars of 2020, which is currently in the port, suffer from the consequences of the impact of the Coronavirus on car sales.
For his part, Hisham El-Deeb, marketing manager for the Abaza Auto Show in Alexandria, said that the total volume of car sales witnessed an increase during the current period, compared to last year, by rates ranging between 10% to 15%, referring to the growth due to low car prices driven by the low price of the dollar.
He added that car prices dropped by EGP 5,000 to EGP 40,000. He attributed the increase in sales volume in the current period to the offers made by some agencies, the most prominent of which are Skoda, Opel, Chevrolet, and Fiat, in addition to the zero customs agreement and the reduction of customs on Turkish car imports.
He pointed out that consumer demand to buy cars in Alexandria witnessed an increase in the summer season more than the winter one, pointing out that the period of time in which purchasing power increases is from June to November.
He stated that the Coronavirus will contribute to the increase in car prices by at least 10%, especially when the stock of cars available in the agencies shrinks, which leads to an increase in demand with a short supply.
Meanwhile, Mohamed Magdi, a car dealer in Alexandria, said that the used car market in Alexandria witnessed a demand in the purchasing movement during the past month, by 60% compared to new cars.
He added that the cars of South Korean, Japanese, and Chinese origin are the bestsellers in the Alexandrian market during the current and past two months, the reason being that they are the least expensive compared to cars of European origin.
He explained that the spread of the Coronavirus in China and some European countries will work to increase car prices in the coming period, expecting that next April will witness the beginning of higher prices for cars in Alexandria.
Mohamed Sami, director of sales of the Afifi Motors Showroom in Alexandria, said that the spread of the Coronavirus will negatively affect the volume of car sales in Alexandria, because it will raise the prices of cars if the stock of cars and feeding components decline.