Passenger Cars - Egypt

Egypt

Revenue in the Passenger Cars market is projected to reach US$4,881.0m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -2.82%, resulting in a projected market volume of US$4,353.0m by 2028.
The market's largest segment is SUVs with a projected market volume of US$1,420.0m in 2024.
Passenger Cars market unit sales are expected to reach 167.40k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$27.43k in 2024.
With a vehicle unit sales share of 31.0% in 2024, Chevrolet is expected to have one of the highest market share in the selected region.
The value market share of the make Chevrolet in the selected region is expected to stand at 27.1% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Egypt has been experiencing significant growth in recent years, driven by changing customer preferences and favorable macroeconomic factors.

Customer preferences: In Egypt, customers have shown a growing preference for passenger cars that are fuel-efficient and environmentally friendly. This shift in preference can be attributed to increasing awareness about the impact of carbon emissions on the environment and the rising cost of fuel. As a result, there has been a surge in demand for hybrid and electric vehicles in the country. Additionally, customers are also placing greater emphasis on safety features and advanced technologies in their cars, such as lane departure warning systems and adaptive cruise control.

Trends in the market: One of the key trends in the Passenger Cars market in Egypt is the increasing popularity of SUVs and crossovers. These vehicles offer a combination of spaciousness, versatility, and off-road capabilities, which appeal to a wide range of customers. The SUV segment has witnessed significant growth in recent years, with both local and international automakers introducing new models to cater to the growing demand. Another trend in the market is the rise of online car sales platforms. With the increasing penetration of the internet and smartphones, customers are increasingly turning to online platforms to research and purchase cars. This trend has been further accelerated by the COVID-19 pandemic, as customers have become more comfortable with online transactions and contactless deliveries. Online car sales platforms offer convenience, transparency, and a wide range of options to customers, which has contributed to their growing popularity in Egypt.

Local special circumstances: Egypt has a young and growing population, with a large proportion of the population in the working-age group. This demographic dividend has resulted in increased disposable income and a higher propensity to spend on consumer goods, including passenger cars. The government has also implemented several initiatives to support the automotive industry, such as reducing import duties on hybrid and electric vehicles and providing subsidies for electric vehicle purchases. These factors have created a favorable environment for the growth of the Passenger Cars market in Egypt.

Underlying macroeconomic factors: The Egyptian economy has been experiencing steady economic growth in recent years, which has had a positive impact on the Passenger Cars market. Rising incomes, low inflation, and favorable interest rates have made car ownership more affordable for a larger segment of the population. Additionally, the government has invested in infrastructure development, including the expansion of road networks and the construction of new cities, which has further boosted demand for passenger cars. In conclusion, the Passenger Cars market in Egypt is witnessing significant growth, driven by changing customer preferences, favorable macroeconomic factors, and government support for the automotive industry. The increasing demand for fuel-efficient and environmentally friendly vehicles, the popularity of SUVs and crossovers, the rise of online car sales platforms, and the young and growing population are all contributing to the growth of the market in Egypt.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).