Report Overview

The growing population with increasing purchasing power, high demand for affordable transportation, limited availability of new cars, a rise in ride-sharing services, and the development of online marketplaces for buying and selling used cars are propelling the growth of Egypt Used Car Market during the forecast period between 2023 and 2029.

Egypt Used Car Market – Industry Trends & Forecast Report, 2029

Egypt used car market size was estimated at USD 50 million in 2022. During the forecast period between 2023 and 2029, Egypt used car market size is expected to grow at a CAGR of 7.30% reaching a value of USD 90 million by 2029. Egypt's used car market is growing with an estimated annual sales volume of over one million units. The market is primarily driven by the high demand for affordable transportation and the limited availability of new cars due to import restrictions and unaffordable prices. Popular models include Toyota Corolla, Hyundai Elantra, and Chevrolet Aveo. Online marketplaces like OLX and Haraj have made it easier for buyers and sellers to connect, but the lack of a formal regulatory framework has led to concerns about fraud and safety issues. Despite these challenges, the used car market in Egypt is expected to continue its upward trend during the forecast period.

Egypt Used Car Market - Overview

A used car, also known as a preowned vehicle, is a vehicle that has been previously owned and driven by one or more individuals before being offered for sale again. These vehicles can range in age, mileage, and condition, and may be sold through private sales or at dealerships. Typically, used cars are less expensive than new cars and can provide a more affordable option for those looking to purchase a vehicle. However, buyers should be aware of potential issues with the vehicle's condition and history and may choose to have the car inspected by a mechanic before making a purchase.

Growth Drivers

Rising Demand for Affordable Transportation Spurring Sales of Used Cars

Egypt used car market is experiencing a surge in growth, driven by the increasing demand for affordable transportation options. With the country's population surpassing 100 million, many Egyptians are turning to the used car market to find reliable and cost-effective vehicles. Also, the COVID-19 pandemic has resulted in many consumers shifting away from public transportation and towards private vehicles, further boosting demand for used cars. The availability of financing options and the emergence of online marketplaces for used cars have also contributed to the market's growth. Overall, the rising demand for affordable transportation is a major growth driver for Egypt's used car market.

High New Car Prices and Affordability Issues

The automotive industry has witnessed an increase in the demand for innovative vehicle amenities including power steering, climate control, and anti-lock brakes. Thus, new cars are now more expensive. Also, the price increase in 2019 which was led by mainstream passenger car segments, indicates the problems with affordability in the new market. Therefore, used car sales have increased significantly in the automotive industry when compared to new car sales. The market for used cars is expected to rise during the forecast period.

Restraints

Limited Availability of Reliable Used Cars in Egypt

Egypt used car market faces a significant growth restraint in the limited availability of reliable vehicles. While the demand for used cars is high due to their affordability compared to new vehicles, the market is hampered by a shortage of well-maintained cars that meet buyer expectations for quality and performance. Many potential buyers are wary of purchasing used cars due to concerns about their condition, which limits the pool of available customers. This situation is exacerbated by the excessive cost of maintenance and repairs, which can further discourage buyers from entering the market. Without a reliable supply of quality used cars, the growth of Egypt used car market may be limited during the forecast period.

Impact of COVID-19 on Egypt Used Car Market

The COVID-19 pandemic significantly impacted Egypt used car market. With the country implementing strict lockdown measures and travel restrictions, consumer demand for second-hand cars has decreased, resulting in a slowdown in sales. Also, the economic uncertainty caused by the pandemic has led to many potential buyers delaying or canceling their purchase plans. Therefore, many used car dealerships have reported a decline in sales, leading to decreased revenue and profit margins. The market is expected to gradually recover as the pandemic subsides and consumer confidence returns. However, it may take some time for the market to fully bounce back.

Egypt Used Car Market

Segmental Coverage

Egypt Used Car Market - By Vehicle Type

On the basis of vehicle type, Egypt used car market is divided into Small Cars, Mid-Size Cars, and Luxury Cars segments. The luxury cars segment dominates the Egypt used car market by vehicle type. The luxury cars segment has led to the decline of other categories as the automotive market has changed. Customers believe luxury cars to be the best cars to drive, as they provide space and size while yet being more compact than off-road vehicles. Today's market has a higher residual value for luxury cars due to an increasing demand and a larger supply network. The market for used luxury cars has shown tremendous demand growth in Egypt.

Egypt Used Car Market – By Fuel Type

On basis of fuel type, Egypt used car market is divided into Petrol/Gasoline and Diesel segments. The petrol/gasoline segment is a higher contributor to Egypt used car market. This is due to a drop in diesel car usage. During the forecast period, the diesel segment is expected to grow at a significant rate. Diesel-powered vehicles have also shown a sustained increase in used vehicle volume sales in emerging countries.

Egypt Used Car Market – By Price Range

By price range, Egypt used car market is divided into Less than 100K, 100–300K, and More than 300K segments. The less than 100k segment is the highest contributor to Egypt used car market. The less than 100K segment is popular among budget-conscious buyers or those looking for a second car. The 100-300K segment is popular among buyers who want a reliable car at a reasonable price, while the more than 300K segment may appeal to buyers looking for luxury or the latest models.

Competitive Landscape

Major players in Egypt used car market include Carswitch, Bey2ollak, OLX Egypt, Edfaraz Trading, Garagly, Carmudi Egypt, Haraj Egypt, Autotrader Egypt, Carzaty, and Ta2see. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In August 2021 - The Government of Egypt launched a new scheme to fuel the growth of the used car market in the country. The scheme offers tax breaks and other incentives to Egyptians encouraging them to replace their old cars with newer, more fuel-efficient models.

Scope of the Report

By Vehicle Type

• Small Cars

• Mid-Size Cars

• Luxury Cars

By Fuel Type

• Petrol/Gasoline

• Diesel

• Others

By Price Range

• Less than 100K

• 100–300K

• More than 300K