Why Egypt’s car prices are finally falling
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For years, Egyptian car buyers faced an impossible market: sky-high prices, low supply, and limited options. But 2025 has brought a dramatic turnaround. After nearly a decade of inflation and import restrictions, car prices are dropping fast — and experts say this time, the change is here to stay.
A combination of stronger supply chains, stabilized currency, increased local manufacturing, and softer demand has reshaped the market. The notorious “overprice” premiums — where consumers paid tens or hundreds of thousands more than the sticker price — have nearly vanished. This is not just a temporary dip, but the beginning of what experts call a “structural reset” in Egypt’s auto industry.
What’s really driving the price drop
Several factors have come together to push car prices downward:
Currency stability: The easing of foreign exchange restrictions and improved access to dollars have allowed importers to bring in more vehicles, restoring supply.
Local production: A surge in domestic car manufacturing, with five new plants launched in just seven months, has increased availability, especially for vehicles under EGP 1.5 million.
Falling demand: With inflation still squeezing household budgets, many Egyptians have postponed car purchases, forcing dealers to offer more competitive pricing.
Lower shipping costs: Stabilized shipping routes and reduced transport fees through the Red Sea have eased pressure on import costs.
The result is a rare moment of good news for Egyptian consumers: more cars, lower prices, and better choices.
Brands slash prices as competition heats up
Major car brands have responded quickly to the new reality. Between 15 and 18 global and regional manufacturers have cut prices since early 2025, with some reductions as high as 20 percent.
Citroën, for instance, trimmed over 10 percent from key models, while Korean brand SsangYong dropped prices by nearly 23 percent. These cuts reflect not only improved supply but also rising competition among manufacturers and dealers.
Used car prices, too, have taken a hit. With new models becoming more affordable, demand for secondhand vehicles has softened — in some cases, losing more than 20 percent of their previous value.
The big bet on local manufacturing
At the heart of this transformation is a bold government-backed push to localize car production. Egypt’s national automotive strategy, endorsed at the highest political levels, aims to turn the auto sector from a chronic importer into a regional exporter.
The plan includes:
Annual production incentives starting at 10,000 units
Direct subsidies up to EGP 50,000 per car
Support for local parts manufacturers (known as feeder industries)
Reforms to remove bureaucratic and financial obstacles for investors
The strategy is already attracting attention: five global automakers have pledged over $600 million in new investments, and 10 new factories are expected to be operational by the end of 2025.
The roadblocks that remain
Despite the momentum, Egypt’s auto sector still faces real structural challenges:
High customs duties on imported components make local assembly costly
Layered VAT collection strains the cash flow of manufacturers
Development fees on larger engines (up to 8.5 percent) hurt the competitiveness of higher-end models
Industry leaders are urging the government to refine its strategy. Suggestions include tying incentives to export targets and reducing financial burdens on manufacturers to encourage sustainable growth.
A new era for Egypt’s car market
What we’re seeing is not a blip — it’s a real transformation. Prices are falling not because of a weak market, but because of deeper structural improvements: stronger production capacity, better import flow, and smarter policy support.
Egyptians, long used to inflated prices and waiting lists, are finally seeing signs of a more rational market. More supply means more choice. Lower prices mean better affordability. And local manufacturing brings long-term benefits for the economy, including jobs, exports, and industrial know-how.
As Egypt continues to build its automotive sector from the ground up, the winners will not just be big manufacturers or foreign investors — but ordinary Egyptians looking for a fair deal in a car showroom.