Car dealers and distributors expect auto prices to decrease only slightly — if at all — in 2018, a number of them tell Ahram Gate. Car prices are influenced by a number of factors, such as regular inflation in their countries of origin and the EGP-USD exchange rate, which means that prices will not drop by more than 1%, in the unlikely event of them decreasing at all, says Omar Balbaa, the head of the Federation of Egyptian Industries’ auto division, stressing the importance of developing the local auto industry and moving up the value chain towards manufacturing. Others are expecting car prices to climb this year, prodded by increases in custom tariffs and other duties, such as the value-added tax. Despite that, FEI auto division member Abdallah Tork sees sales rebounding slightly during the year. Auto sales slumped c. 40% in 2017 as prices skyrocketed after the EGP float in late 2016. Some car dealers had said in October that they expect car prices to drop 10-20% by the start of 2018 to reflect improvements in the USD exchange rate and the impact of various freetrade agreements coming into effect.

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