Market Research Report New Car Sales in Egypt,Used Car Sales in Egypt,Car | Page 9

July 2017
Egypt Car Finance Market Outlook to 2021
For new cars, the tenure of five years dominates the car finance market with a share
of ~% on the basis of number of new cars financed in 2016. It is followed by three
years, two years, one year and other tenures.
For used cars, the tenure of three year accounted for the highest share in the market
during 2016 on the basis of number of used cars financed, which was ~%. Banks
dominate over the private financing sector in the market with a share of ~% in terms
of credit disbursed.
Cairo holds the highest share among all other regions of Egypt in terms of number of
new cars financed. It held a share of ~% during 2016. Alexandria holds the second
position in the market followed by Giza, Luxor and others.
Competitive Landscape
Non-bank financial companies are still underdeveloped in the country, hence the
major source of private finance in Egypt is dealership financing. The banks held a
share of ~% in the market in terms of credit disbursed for car finance followed by
private finance with a share of ~% during 2016. There are nearly 41 banks spread
across Egypt. All these players are competing against each others on the basis of
interest rates, loan tenure, minimum salary requirement, down payment and other
related parameters. The major players in the market are Bank of Alexandria, Banque
Misr, National Bank of Egypt, Bank Audi and others. Dealership financing is of great
importance within the country due to the accessibility and faster loan processing
system of the dealers. The lack of banking penetration is also a factor that raises the
demand for financing through dealers.
Future Potential of Egypt Car Finance Market
During the forecast period 2017-2021, the Egypt car finance market is expected to
recover slowly from the fall it has experienced towards the end of the review period,
2011-2016. It is anticipated that the car finance market in the country will grow at a
CAGR of ~% during the forecast period 2016-2021. The recovery is presumed to be at
a slow pace due to various factors such as tightened CBE regulations, rising prices in
new car prices, shortage in the supply of used cars, introduction of VAT and such
other factors. However, a growth is expected to be observed in the market owing to
the government initiatives taken to stabilize the economy, increased demand for
used cars, increased offerings from the banks and dealers and other factors.
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