Auto companies are reportedly looking into reducing their prices to counteract a recent slump in sales, following the lead of big industry names such as GB Auto and Mansour Group, Al Mal reports. The move to reduce prices has stimulated car sales, encouraging other companies to follow suit, an unnamed auto distributor tells the newspaper. The Finance Ministry’s decision to cap customs duty exchange rate at EGP 15.75 until mid-March has also provided companies with the space to reduce prices, particularly as most vehicles currently in the market were imported at a higher USD rate, the source says. Companies will likely resort to slashing prices as a temporary measure to speed up the sale of current stockpiles, and will reassess their pricing schemes once these stockpiles are cleared, according to the newspaper. GB Auto had announced last week it is offering discounts ranging from EGP 18k-51k on all Hyundai, Chery, Geely, and Mazda cars. Al Borsa has the full list of GB Auto’s prices before and after the reductions.

Among those following the trend is Nissan Egypt, which is expected to announce price reductions of up to 2-3% today, an official distributor tells Al Borsa. The company had reportedly ordered distributors to halt all auto sales until it comes up with a new pricing scheme. Kia Motors has reportedly also cut its prices by EGP 10-80k, the newspaper adds.