Egypt's tire market hit by foreign currency woes
The market has witnessed a recession period and a decline in the sales of merchants and agencies by nearly 65% compared to the same period last year, which witnessed a recovery period during the summer.
Hussien Mahmoud, sales manager at El Mostafa Wheels and Tires, said that the increase in the price of the US dollar in the past five months increased wheel and tyre prices, obstructed selling and buying traffic, and caused a market recession.
Lassa tyres, made in Turkey, and Maxxis tyres, the most popular in the Egyptian market, witnessed increased prices, with 175/70 R13 tyres registering EGP 370 compared to EGP 270 five months prior. The price of 185/65 R14 tyres reached EGP 490, up from EGP 390. The price of 195/70 R14 tyres reached EGP 515 compared to EGP 420 five months prior.
The prices of Kenda tyres—an American-Canadian manufacturer—also increased. The price of 185/65 R14 tyres registered EGP 500 from EGP 410. He pointed out that the decline in the company’s sales in the Egyptian market is due to high prices and high production costs. The company has had to offer tyres of the same brand, but made in Turkey at lower costs, in an attempt to stimulate sales in Egypt.
Mahmoud said that the Chinese manufactured tyres of Kenda registered EGP 300 for 175/70 R13 tyres, EGP 340 for 185/65 R14 tyres, and EGP 390 for 195/65 R14 tyres.
The source said that the increase in the US dollar price in the mentioned period led to an increase in the price of the Indonesian tyre Achilles. The price of Achilles 175/70 R13 tyres registered EGP 340 compared to EGP 260 prior, while 185/65 R14 tyres registered EGP 490, up from EGP 370.
Prices of the German brand Continental also increased, with 175/70 R13 tyres registering EGP 420 compared to EGP 330. The price of 185/65 R14 tyres increased to EGP 610 from EGP 430 previously, and the price of 205/55 R16 tyres registered EGP 750 instead of EGP 525—an increase of EGP 225 over five months.
Tyre prices for the Korean brand Hankook also increased to register EGP 400 from the previous EGP 300 for 175/70 R13 tyres. The price of 195/70 R14 tyres registered EGP 525 compared to EGP 420. Hankook 185/70 R14 tyres registered EGP 490, up from EGP 380.
The Turkish manufacturer tyres of Hankook, Pirelli, witnessed 175/70 R13 tyres increase in price from EGP 300 to EGP 390, and the 185/65 R14 tyres from EGP 450 to EGP 525. The195/70 R14 tyres increase from EGP 430 five months ago to EGP 570.
The price of tyres by the Korean-Vietnamese brand Kumho increased as well. The price of 175/70 R13 tyres registered EGP 340 compared to EGP 250, and the price of the 185/65 R14 tyres increased to EGP 445 compared to EGP 350.
The 195/70 R14 tyre price registered EGP 460 instead of EGP 340 before the increase. The 205/45 R16 tyre price increased to EGP 625 from EGP 420, while the tyre price for 205/55 R16 tyres reached EGP 640 instead of EGP 500.