Car prices in Egypt’s local market have risen between 10% and 25% due to disruptions in the Advance Cargo Information Declaration (ACID) system since the start of the US-Israeli war on Iran, along with a noticeable decline in supply, according to automotive sector sources.
Car imports have completely stopped, creating a shortage in local supply, said Osama Abul Magd, head of the Car Dealers Association and deputy head of the Automotive Division at the Federation of Egyptian Chambers of Commerce (FEDCOC).
The mandatory advance shipment registration system requires importers to submit shipment data and documents at least 48 hours before shipping, allowing authorities to assess risks through the risk management system.
“Prices rose by an average of 10% to 15%, depending on the model, with some brands such as the Chinese automaker Jetour seeing increases exceeding 25%,” Abul Magd said.
As regional tensions continue under a fragile cease-fire, Abul Magd said prices are likely to return to normal within “one to three months” once the situation stabilizes.
Meanwhile, Omar Balbaa, head of the General Car Division at the federation, said the gap between supply and demand has widened due to difficulties in securing foreign currency and challenges in opening letters of credit, fueling market instability.
“The phenomenon of ‘overprice’ has become widespread at varying levels that are difficult to quantify due to differences in market segments and models,” Balbaa told Al Manassa.
The price of the US dollar has seen gradual increases against the Egyptian pound since the outbreak of the US–Israeli war on Iran, rising from 47.64 pounds before the war to over 52 pounds in March, before reaching a peak of 54.6 pounds at the end of the same month, and then declining again to around 52 pounds amid recent de-escalation.
“There are waves of uneven price increases ranging from around 50,000 pounds up to 300,000–400,000 pounds in some cars, especially higher-end segments,” Montaser Zaitoun, member of the Car Division at the federation, told Al Manassa.
Cars starting at about 700,000 pounds have been affected, with the largest increases concentrated in higher-end vehicles compared to more affordable models, Zaitoun added.
In a similar crisis, car imports declined during fiscal year 2022-23 amid foreign currency shortages, falling to $397.2 million compared with $2.1 billion in the previous fiscal year, according to Egypt’s Central Bank.
