Don’t expect car prices to drop when tariffs on EU imports fall to zero, says Ghabbour: It is unlikely that prices on imported EU vehicles would drop once tariffs on them fall to zero on 1 January, GB Auto Chairman Raouf Ghabbour said at the Automech Formula 2018 conference on Wednesday. Ghabbour pointed to the continued rise in prices that have accompanied every subsequent cut in tariffs on EU and Turkish car imports that came with the agreement with the EU. He cites the price competitiveness of Japan and Korean-made cars in Egypt as evidence that the agreement has failed to lower prices in the automotive sector, according to Al Mal.

Automotive directive fatigue has set in: Talk of an automotive directive is essentially a moot point at this juncture, Ghabbour added. The measure has been on the drafting table since 2009 as part of a bit to protect the domestic assembly industry against what it says is unfair competition from Turkish, Moroccan and EU imports. The zombie legislation — originally meant to grant incentives to assemblers to move up the value chain to manufacturing to compete with EU and other imports — is currently in limbo, as the Madbouly Cabinet looks to tweak it. Trade and Industry Minister Amr Nassar had said last month that the ministry is planning to have the automotive directive drafted and ready before the House of Representatives reconvenes for the fall legislative session in October.

Nonetheless, Ghabbour sees prices in Egypt as stabilizing, despite marginal increases of 2-3% on auto parts imported by local assemblers. He sees sales on cars reaching 130-140k by the end of the year.