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Monday, 6 April 2020

Egypt’s auto distributors want to give buyers new car licenses directly from the dealership

Car dealerships want to be able to arrange new car licenses for customers amid suspension of gov’t services: Auto manufacturers and car dealers are lobbying the government to allow them to arrange new car licenses issued from traffic units on behalf of their customers, according to Al Mal. Public-facing government services — including the issuance of car and driving licenses — have been suspended as of last month as part of the government’s measures to curb the spread of covid-19. Industry players, including GB Auto CEO Raouf Ghabbour and Egyptian Automotive and Trading Company Executive Director Karim Naggar, say this suspension is slowing down automotive sales and is creating a backlog of license requests that could be resolved by setting up a mechanism that allows dealers to get licenses issued for consumers. Prime Minister Moustafa Madbouly has set up a committee to look into the feasibility of the request.

Background: Local auto distributors have said that automotive sales significantly contracted in March after the government decided to halt issuance of new driving licenses as part of covid-19 precautionary restrictions to restrict large gatherings last month.

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