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Thursday, 11 July 2019

Boudy Group freezes plans to assemble Changhe cars in Egypt amid weak competition

Boudy Group halts plans to assembly Changhe cars, saying Chinese cars don’t sell as well: Boudy Group, the local distributor for China’s Changhe Automobile and Kenbo, is mulling freezing plans to assemble Changhe cars in Egypt due to the weak demand for Chinese cars in the market, General Manager Mostafa Mohamed told Al Mal. The group has also decided to halt imports of Changhe Q7, which it had begun selling in Egypt last year, because the car failed to compete with other SUV sport cars of lower prices. The company had said last year that it was reviewing offers from ِAboul Fotouh Automotive and the Egyptian German Automotive Company to begin locally assembling Changhe Q7 in 2019, expecting to assemble 1,000 cars per year at an initial investment cost of EGP 100 mn.

The news comes as a number of other companies have expressed interest in assembling cars in Egypt amid a bundle of incentives the government is currently reviewing. Sources had told Enterprise that the incentives, which would include customs breaks reaching 100%, would be a sliding scale based on how much local content manufacturers use, starting at 10%.

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