{"id":555382,"date":"2021-11-11T04:11:21","date_gmt":"2021-11-11T04:11:21","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/tuk-tuk-import-ban-hits-gb-auto\/"},"modified":"2021-11-11T04:11:21","modified_gmt":"2021-11-11T04:11:21","slug":"tuk-tuk-import-ban-hits-gb-auto","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/tuk-tuk-import-ban-hits-gb-auto\/","title":{"rendered":"Tuk-tuk import ban hits GB Auto"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a> <strong>Tuk-tu<\/strong><sup><\/sup><strong>k import ban has GB Auto searching for alternatives:<\/strong> The Madbouly government\u2019s decision <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0db2880d-bff8-49bc-a419-f0d0edc9ff40\">to ban imports of tuk-tuk components<\/a> is threatening to wipe out GB Auto\u2019s three-wheeler business segment, leading the company to yesterday <a href=\"https:\/\/ent.news\/2021\/11\/GB-Auto-Takes-Proactive-Approach-to-Mitigate-Impact-of-Three-Wheeler-Import-Ban-E..pdf\">announce (pdf)<\/a> that it is preparing backup plans to absorb the shortfall in revenues. \u201cManagement is taking proactive steps and has already begun preparing alternatives \u2026 the current headwinds are not new to GB Auto, and we are confident that we can mitigate the anticipated impact on our performance,\u201d Marina Kamel, the company\u2019s IR manager, told Enterprise.<\/p>\n<p><strong>How important are three-wheelers to GB Auto?<\/strong> The company doesn\u2019t break out sales figures for tuk-tuks, having always included them in its larger motorcycles and three-wheelers segment. Its <a href=\"https:\/\/ent.news\/2021\/8\/GB-Auto-ER-2Q21-E-FINAL.pdf\">e2Q2021 earnings release (pdf)<\/a> reported the segment brought in EGP 1.8 bn in revenues during 1H2021. This accounts for roughly 16%<sup><\/sup> of its total auto-related revenues during the period. GB Auto sold almost 37k three-wheelers in the January-June period, up 47% on the same period in 2020 and higher than the 30.6k motorcycles sold.<\/p>\n<p><strong>Breathing room:<\/strong> GB Auto still has 3-6 months of inventory, giving it room to mitigate the effect as it looks for alternatives, board member Mansour Kabbani tells us. \u201cWe\u2019re a very big diversified company with very big lines of businesses, whether that\u2019s cars or non-banking financial services,\u201d Kabbani added, noting that the company expects to absorb the loss of the tuktuk business.<\/p>\n<p><strong>A potential alternative:<\/strong> The company is considering making a play for the natural gas-powered mini van market, which the government is trying to stimulate through <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/351b97a5-2950-492f-8fb5-9032138878a3\">a scheme<\/a> to encourage motorists to trade in their gasoline vehicles for a natgas-powered alternative. The Public Enterprises Ministry had been in talks with GB Auto to <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2a1294da-6129-4674-a301-157521404d28\">potentially work together<\/a> on manufacturing the natgas microbuses, but these talks were shelved.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tuk-tuk import ban has GB Auto searching for alternatives: The Madbouly government\u2019s decision to ban imports of tuk-tuk components is threatening to wipe out GB Auto\u2019s three-wheeler business segment, leading the company to yesterday announce (pdf) that it is preparing backup plans to absorb the shortfall in revenues. \u201cManagement is taking proactive steps and has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":555383,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9852],"tags":[9851,144,72,241,131,343,132,207],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-555382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-auto","tag-auto","tag-automotive","tag-enterpriseam","tag-gb-auto","tag-manufacturing","tag-regulation","tag-trade","tag-transport","wpautop","entry"],"acf":{"mongo_id":"b852e5ee-45af-4686-acd9-817215e64a32","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/11\/420.jpg","photo_position":"above","related_issue":[555364],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The company could produce the three-wheelers with state-owned El Nasr Automotive, according to the source.","rel":"","context":"In &quot;Automotive + Transportation&quot;","block_context":{"text":"Automotive + Transportation","link":"https:\/\/enterpriseam.com\/egypt\/category\/automotive-transportation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":573182,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/22\/govt-talks-with-gb-auto-for-tuk-tuk-alternatives-have-come-to-halt\/","url_meta":{"origin":555382,"position":1},"title":"Gov\u2019t talks with GB Auto for tuk-tuk alternatives have come to halt","author":"enterpriseam admin","date":"22 July 2020","format":false,"excerpt":"The Public Enterprises Ministry and GB Auto have ended talks to jointly manufacture an alternative to tuk-tuks, Al Mal reports, citing an unnamed government source. Word that GB Auto and the ministry were negotiating a potential agreement came earlier this year after the government said in 2019 that it wanted\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":630465,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/22\/the-killer-virus-of-tuk-tuks-spreads-chaos-in-egypt\/","url_meta":{"origin":555382,"position":2},"title":"The \u201ckiller virus\u201d of tuk-tuks spreads chaos in Egypt","author":"enterpriseam admin","date":"22 April 2018","format":false,"excerpt":"The \u201ckiller virus\u201d of tuk-tuks is bringing along a culture of chaos and a total collapse of order as it spreads into Egypt, Emad El Din Hussein writes for Al Shorouk. He makes it clear that he is not criticizing tuk-tuk drivers, who he considers \u201cvictims,\u201d but condemns the \u201cconspirators\u201d\u2026","rel":"","context":"In &quot;On Deadline&quot;","block_context":{"text":"On Deadline","link":"https:\/\/enterpriseam.com\/egypt\/category\/on-deadline\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":630020,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/10\/piaggio-considers-assembling-tuk-tuks-in-egypt\/","url_meta":{"origin":555382,"position":3},"title":"Piaggio considers assembling tuk-tuks in Egypt","author":"enterpriseam admin","date":"10 April 2018","format":false,"excerpt":"INVESTMENT WATCH- Is Italy\u2019s Piaggio looking to assemble tuk-tuks in Egypt? Italian motor vehicle manufacturer Piaggio is considering teaming up with local partners to assemble tuk-tuks in Egypt, the head of the Egyptian Auto Feeders Association (EAFA) Ehab Abul Enein tells Al Mal. A Piaggio delegation has just concluded a\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":602272,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/03\/24\/did-the-government-have-another-change-of-heart-on-egypts-tuk-tuks\/","url_meta":{"origin":555382,"position":4},"title":"Did the government have (another) change of heart on Egypt\u2019s tuk-tuks?","author":"enterpriseam admin","date":"24 March 2019","format":false,"excerpt":"Did the government have (another) change of heart on tuk-tuks? Egypt\u2019s governors are looking into issuing public transport licenses for seven-seater minivans as a replacement for three-wheeled tuk-tuks and plan to push the minivans as alternatives for tuk-tuk drivers, according to a Cabinet statement. The Local Development Ministry will look\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":602755,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/04\/raya-to-cut-tuk-tuk-production-acquire-van-agency\/","url_meta":{"origin":555382,"position":5},"title":"Raya to cut tuk-tuk production, acquire van agency","author":"enterpriseam admin","date":"4 April 2019","format":false,"excerpt":"Raya Holding is looking for an Indian or Chinese van manufacturer in search of a seven-seater passenger van after the Industrial Development Authority\u2019s decision to stop handing out licenses to tuk-tuk manufacturers and assemblers. Raya CEO Medhat Khalil said he expects the agreement to materialize by the end of the\u2026","rel":"","context":"In &quot;Automotive + Transportation&quot;","block_context":{"text":"Automotive + Transportation","link":"https:\/\/enterpriseam.com\/egypt\/category\/automotive-transportation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/555382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=555382"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/555382\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/555364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/555383"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=555382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=555382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=555382"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=555382"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=555382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}