Report Overview

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

1. Research Framework
   1. Research Objective
   2. Vehicle Type Overview
   3. Market Segmentation
2. Executive Summary
3. Egypt Used Car Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. High demand for affordable transportation solutions
         2. Increasing preference for used cars due to their lower prices
         3. Growing popularity of online marketplaces for buying and selling used cars
      2. Restraints
         1. Limited consumer trust in the quality and reliability of used cars
         2. Limited availability of financing options for used car purchases
      3. Opportunities
         1. Growing popularity of online marketplaces for buying and selling used cars
         2. Potential for growth in the commercial used car market
      4. Challenges
         1. Limited availability of skilled technicians and mechanics for servicing and repairing used cars
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Egypt Used Car Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
      2. Market Share and Forecast
      3. By Vehicle Type
         1. Small Cars
         2. Mid-Size Cars
         3. Luxury Cars
      4. By Fuel Type
         1. Petrol/Gasoline
         2. Diesel
         3. Others
      5. By Price Range
         1. Less than 100K
         2. 100-300K
         3. More than 300K
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Egypt Used Car Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Egypt Used Car Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Carswitch
   2. Bey2ollak
   3. OLX Egypt
   4. Edfaraz Trading
   5. Garagly
   6. Carmudi Egypt
   7. Haraj Egypt
   8. Autotrader Egypt
   9. Carzaty
   10. Ta2see
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents, By Region
   5.    Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Egypt Used Car Segmentation

Figure 2       Egypt Used Car Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Egypt Used Car Market Size, By Value (USD Million), 2019–2029

Figure 5       Egypt Used Car Market Share, By Vehicle Type, By Value, 2019–2029

Figure 6       Egypt Used Car Market Share, By Fuel Type, By Value, 2019–2029

Figure 7       Egypt Used Car Market Share, By Price Range, By Value, 2019–2029

List of Tables

Table 1        Egypt Used Car Market Size, By Value (USD Million), 2019–2029

Table 2        Egypt Used Car Market Size, By Vehicle Type, By Value, 2019–2029

Table 3        Egypt Used Car Market Size, By Fuel Type, By Value, 2019–2029

Table 4        Egypt Used Car Market Size, By Price Range, By Value, 2019–2029

Table 5        Carswitch Company Overview

Table 6        Carswitch Financial Overview

Table 7        Bey2ollak Company Overview

Table 8        Bey2ollak Financial Overview

Table 9        OLX Egypt Company Overview

Table 10      OLX Egypt Financial Overview

Table 11      Edfaraz Trading Company Overview

Table 12      Edfaraz Trading Financial Overview

Table 13      Garagly Company Overview

Table 14      Garagly Financial Overview

Table 15      Carmudi Egypt Company Overview

Table 16      Carmudi Egypt Financial Overview

Table 17      Haraj Egypt Company Overview

Table 18      Haraj Egypt Financial Overview

Table 19      Autotrader Egypt Company Overview

Table 20      Autotrader Egypt Financial Overview

Table 21      Carzaty Company Overview

Table 22      Carzaty Financial Overview

Table 23      Ta2see Company Overview

Table 24      Ta2see Financial Overview