Osama Abu El-Magd, Chairman of the Car Dealers Association, stated that the new car market is witnessing a 20 to 25% price drop due to the localization of car manufacturing and the elimination of the ‘consumer trader’ phenomenon. In an interview on Extra News channel on Monday evening, he explained that the ‘consumer trader’ phenomenon appeared in recent years through individuals investing in cars without actual need, but controlling it has regulated the market and returned prices to fair levels. He praised the state’s direction towards localizing car production, noting the opening of 7 new car manufacturing plants starting from 2025, in addition to 18 existing factories, which led to price decreases in both new and used cars. He mentioned that Egyptian consumers now prefer buying new cars with warranties and modern specifications instead of used cars at similar prices.

He also praised President Abdel Fattah El-Sisi’s political decision to localize the car industry, describing it as the decisive factor behind current changes, recalling that Egypt was the first country in the Middle East to manufacture a car in 1960 by a similar presidential decision. He confirmed that the stability of the dollar price after the ‘Ras El Hikma deal’ contributed to market regulation, reflecting on the cost of cars and other goods linked to foreign currency.