Mercedes-Benz denies withdrawal from Egyptian market

Following a state of confusion that resulted from rumours that Mercedes-Benz was withdrawing from the market, the German luxury car-maker issued an official statement denying this, stating that they only stopped its assembly services.

The company declared the decision is believed to be in the interest of consumers, as local assembly increases the price of the final product, compared to imported cars. The company is still fully operating in Egypt and will not withdraw, as the Egyptian market is one of its most important markets in the Middle East, according to the statement.

Hamdy Abdel Aziz, Chairman of the Chamber of Engineering Industries in the Federation of Egyptian Industries (FEI), told the press that Mercedes-Benz stopped its assembly process in Egypt due to the unstable government decisions. He condemned the government, saying that it is leading to the failure of the industry and the exiting of investors. A number of federation members said that BMW’s exit from Egypt is expected for the same reasons related to confused government decisions.

The reports were cause for great confusion in the car market, whereby Mercedes-Benz’s decision to stop the assembly process in Egypt was made years ago and was implemented when the customs value made importing a better decision for the market. This is especially true as all company products are made in Germany and are subjected to the GATT agreement approved by Egypt over 10 years ago. The customs value is expected to reach zero in 2019, which assures that mass importing is expected to take place soon and not just assembly, especially in cars of European origin.